A Kernel Search Matheuristic to Solve The Discrete Leader-Follower Location Problem

Dolores R. Santos-Peñate (), Clara M. Campos-Rodríguez () and José A. Moreno-Pérez ()
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Dolores R. Santos-Peñate: Universidad de Las Palmas de G.C.
Clara M. Campos-Rodríguez: Universidad de La Laguna
José A. Moreno-Pérez: Universidad de La Laguna

Networks and Spatial Economics, 2020, vol. 20, issue 1, No 4, 73-98

Abstract: Abstract In the leader-follower, (r|p)-centroid or Stackelberg location problem, two players sequentially enter the market and compete to provide goods or services. This paper considers this competitive facility location problem in a discrete space. To solve it, the linear programming formulations for the leader and the follower are integrated into an algorithm which, in an iterative process, finds a solution by solving a sequence of these linear problems. We propose a matheuristic procedure that provides solutions for the leader via a kernel search algorithm. Taking into account binary and S-shaped customer choice rules, we present the computational results obtained and compare the exact algorithm with two versions of the kernel search procedure.

Keywords: Competitive location; Leader-follower problem; (r|p)-centroid; (r|Xp)-medianoid; Linear programming; Kernel search (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s11067-019-09472-7

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