Robust location of new housing developments using a choice model

Juan Carlos Espinoza Garcia () and Laurent Alfandari ()
Additional contact information
Juan Carlos Espinoza Garcia: ESSEC Business School
Laurent Alfandari: ESSEC Business School

Working Papers from HAL

Abstract: We consider the issue of choosing a subset of locations to construct new housing developments maximizing the satisfaction of potential buyers. The allocation of demands to the selected locations is modeled by a choice model, based on the distance to the location, real-estate prices and incomes. We study two robust counterparts of the optimal location problem, where uncertainty lies on demand volumes for the rst one, and on customer preferences for the second one. In both cases, the parameters subject to uncertainty appear both in the objective function and constraints. The second robust model combines a scenario-based approach with nominal, price-centric and distance-centric scenarios on customers preferences, and an uncertainty budget approach that limits the number of cities that can deviate from the nominal scenario. Computational experiments are conducted on instances of the Paris region to analyze the tractability of the problem and its robust counterparts, and derive insights for the new housing development issue.

Keywords: Housing; Robust Optimization; Multinomial Logit Choice Models; Facility Location (search for similar items in EconPapers)
Date: 2015-10-26
New Economics Papers: this item is included in nep-dcm and nep-ure
Note: View the original document on HAL open archive server: https://essec.hal.science/hal-01230621
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://essec.hal.science/hal-01230621/document (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:wpaper:hal-01230621

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().