Cover-Based Competitive Location Models

Pawel Kalczynski ()
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Pawel Kalczynski: California State University-Fullerton

Chapter Chapter 12 in Contributions to Location Analysis, 2019, pp 277-320 from Springer

Abstract: Abstract In competitive location models a set of demand points, each with known buying power exist in a market area. Competing for the buying power in the area is several of one’s chain facilities and competing facilities. If an area has only competitors’ facilities and no chain facilities are present in the area, then the chain is considering an area. The competing facilities attract buying power from demand points, yielding market share (the proportion of total buying power in the area captured by one’s chain). The objective common to all competitive location models is the maximization of market share. Usually, profit is assumed to be a monotonically increasing function of market share. Therefore, maximizing profit is associated with maximizing market share.

Date: 2019
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DOI: 10.1007/978-3-030-19111-5_12

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