Location of hubs in a competitive environment

Vladimir Marianov, Daniel Serra () and Charles Revelle

Economics Working Papers from Department of Economics and Business, Universitat Pompeu Fabra

Abstract: We offer a formulation that locates hubs on a network in a competitive environment; that is, customer capture is sought, which happens whenever the location of a new hub results in a reduction of the current cost (time, distance) needed by the traffic that goes from the specified origin to the specified destination. The formulation presented here reduces the number of variables and constraints as compared to existing covering models. This model is suited for both air passenger and cargo transportation. In this model, each origin-destination flow can go through either one or two hubs, and each demand point can be assigned to more than a hub, depending on the different destinations of its traffic. Links (``spokes'' have no capacity limit. Computational experience is provided.

Keywords: Location; hub; tabu search (search for similar items in EconPapers)
JEL-codes: C61 R12 R53 (search for similar items in EconPapers)
Date: 1997-06
New Economics Papers: this item is included in nep-cmp and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://econ-papers.upf.edu/papers/227.pdf Whole Paper (application/pdf)

Related works:
Journal Article: Location of hubs in a competitive environment (1999)
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:upf:upfgen:227

Access Statistics for this paper

More papers in Economics Working Papers from Department of Economics and Business, Universitat Pompeu Fabra
Bibliographic data for series maintained by ( this e-mail address is bad, please contact ).