A Kernel Search Matheuristic to Solve The Discrete Leader-Follower Location Problem

In the leader-follower, ( r | p )-centroid or Stackelberg location problem, two players sequentially enter the market and compete to provide goods or services. This paper considers this competitive facility location problem in a discrete space. To solve it, the linear programming formulations for th...

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Bibliographic Details
Published in:Networks and spatial economics 2020-03, Vol.20 (1), p.73-98
Main Authors: Santos-Peñate, Dolores R., Campos-Rodríguez, Clara M., Moreno-Pérez, José A.
Format: Article
Language:English
Subjects:
Algorithms
Civil Engineering
Economic activity
Economics
Economics and Finance
Formulations
Game theory
Iterative methods
Kernels
Linear programming
Operations research
Operations Research/Decision Theory
Regional/Spatial Science
Search algorithms
Site selection
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Summary:In the leader-follower, ( r | p )-centroid or Stackelberg location problem, two players sequentially enter the market and compete to provide goods or services. This paper considers this competitive facility location problem in a discrete space. To solve it, the linear programming formulations for the leader and the follower are integrated into an algorithm which, in an iterative process, finds a solution by solving a sequence of these linear problems. We propose a matheuristic procedure that provides solutions for the leader via a kernel search algorithm. Taking into account binary and S-shaped customer choice rules, we present the computational results obtained and compare the exact algorithm with two versions of the kernel search procedure.
ISSN:1566-113X
1572-9427
DOI:10.1007/s11067-019-09472-7