A conditional p-hub location problem with attraction functions

We formulate the competitive hub location problem in which customers have gravity-like utility functions. In the resulting probabilistic model, customers choose an airline depending on a combination of functions of flying time and fare. The (conditional) follower's hub location problem is solve...

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Bibliographic Details
Published in:Computers & operations research 2009-12, Vol.36 (12), p.3128-3135
Main Authors: Eiselt, H.A., Marianov, Vladimir
Format: Article
Language:English
Subjects:
Conditional location
Gravity model
Heuristic
Hub location
Studies
Transportation terminals
Utility functions
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Summary:We formulate the competitive hub location problem in which customers have gravity-like utility functions. In the resulting probabilistic model, customers choose an airline depending on a combination of functions of flying time and fare. The (conditional) follower's hub location problem is solved by means of a heuristic concentration method. Computational experience is obtained using the Australian data frequently used in the literature. The results demonstrate that the proposed method is viable even for problems of realistic size, and the results appear quite robust with respect to the leader's hub locations.
ISSN:0305-0548
1873-765X
0305-0548
DOI:10.1016/j.cor.2008.11.014