A review of competitive facility location in the plane

In this paper, we review competitive location models. Retail facilities operate in a competitive environment with an objective of profit and market share maximization. These facilities are different from each other in their overall attractiveness to consumers. The basic problem is the optimal locati...

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Bibliographic Details
Published in:Logistics research 2014-12, Vol.7 (1), p.1-12, Article 114
Main Author: Drezner, Tammy
Format: Article
Language:English
Subjects:
Competition
Competitive
Engineering
Engineering Economics
Facility location
Gravity model
Huff
Industrial and Production Engineering
Location-allocation
Logistics
Marketing
Markets
Modelling
Operations Research/Decision Theory
Optimization
Organization
Review
Simulation and Modeling
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Summary:In this paper, we review competitive location models. Retail facilities operate in a competitive environment with an objective of profit and market share maximization. These facilities are different from each other in their overall attractiveness to consumers. The basic problem is the optimal location of one or more new facilities in a market where competition already exists or will exist in the future. Extensions to the models include an analysis of the optimal allocation of a budget among new facilities and their best locations, modeling location under conditions of uncertainty and future competition, incorporating the concept of a threshold in competitive location, modeling lost demand, and minimizing cannibalization.
ISSN:1865-0368
1865-035X
1865-0368
DOI:10.1007/s12159-014-0114-z