A leader-follower model for discrete competitive facility location

被引:44
|
作者
Drezner, Tammy [1 ]
Drezner, Zvi [1 ]
Kalczynski, Pawel [1 ]
机构
[1] Calif State Univ Fullerton, Steven G Mihaylo Coll Business & Econ, Fullerton, CA 92834 USA
关键词
Facility location; Competitive location; Cover models; Stackelberg equilibrium; Leader-follower; DESIGN (1-VERTICAL-BAR-1)-CENTROID PROBLEM; SOLUTION ALGORITHM; MARKET SHARE; LOST DEMAND;
D O I
10.1016/j.cor.2015.04.012
中图分类号
TP39 [计算机的应用];
学科分类号
081203 ; 0835 ;
摘要
In this paper we investigate a leader-follower (Stackelberg equilibrium) competitive location model. The competitive model is based on the concept of cover. Each facility attracts consumers within a "sphere of influence" defined by a "radius of influence." The leader and the follower, each has a budget to be spent on the expansion of their chains either by improving their existing facilities or constructing new ones. We find the best strategy for the leader assuming that the follower, knowing the action taken by the leader, will react by investing his budget to maximize his market share. The objective of the leader is to maximize his market share following the follower's reaction. (C) 2015 Elsevier Ltd. All rights reserved.
引用
收藏
页码:51 / 59
页数:9
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