Locating Multiple Competitive Facilities: Spatial Interaction Models with Variable Expenditures

Oded Berman and Dmitry Krass

Annals of Operations Research, 2002, vol. 111, issue 1, 197-225

Abstract: We develop a new framework for location of competitive facilities by introducing non-constant expenditure functions into spatial interaction location models. This framework allows us to capture two key effects – market expansion and cannibalization – within the same model. We develop algorithmic approaches for finding optimal or near-optimal solutions for several models that arise from choosing a specific form of the expenditure functions. Copyright Kluwer Academic Publishers 2002

Keywords: competitive facility location models; integer programming; greedy heuristics; worst-case bounds (search for similar items in EconPapers)
Date: 2002
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DOI: 10.1023/A:1020957904442

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