Leader-Follower Models in Facility Location

Tammy Drezner () and Zvi Drezner ()
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Tammy Drezner: California State University
Zvi Drezner: California State University

A chapter in Spatial Interaction Models, 2017, pp 73-104 from Springer

Abstract: Abstract Facility location models deal, for the most part, with the location of plants, warehouses, distribution centers, retail facilities among others. In this chapter we review the game theoretical concept of the leader-follower in facility location models which addresses specific circumstances: (i) competitive location of two facilities anywhere on the plane; (ii) covering a large area by chain facilities so that a future competitor will not be able to attract much demand; (iii) competitive location of two facilities applying the gravity (Huff) rule; (iv) competitive location of multiple facilities using the cover-based rule; and (v)locating facilities on the nodes of a network to cover as much demand as possible following a removal of a link by a follower.

Keywords: Market Share; Tabu Search; Tabu List; Demand Point; Competitive Location (search for similar items in EconPapers)
Date: 2017
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DOI: 10.1007/978-3-319-52654-6_5

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