Location and quality selection for new facilities on a network market

In this paper, the problem of determining the location and quality of new facilities in a network market is analyzed. Customers make their choice according to an attraction function, which is directly proportional to the facility quality level and decreasing with respect to the distance between cust...

Full description

Saved in:
Bibliographic Details
Published in:The Annals of regional science 2014-03, Vol.52 (2), p.537-560
Main Authors: Suárez-Vega, Rafael, Santos-Peñate, Dolores R., Dorta-González, Pablo
Format: Article
Language:English
Subjects:
Algorithms
Attraction
Chain stores
Cluster analysis
Competition
Customers
Economics
Economics and Finance
Environmental Economics
Geography
Integers
Landscape/Regional and Urban Planning
Linear models
Location of industry
Markets
Microeconomics
Networks
Operations research
Original Paper
Perception
Position (location)
Quality standards
Regional/Spatial Science
Retailing industry
Studies
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:In this paper, the problem of determining the location and quality of new facilities in a network market is analyzed. Customers make their choice according to an attraction function, which is directly proportional to the facility quality level and decreasing with respect to the distance between customers and facilities. In order to solve the location problem, both an integer linear program and an exact algorithm are proposed. These algorithms are embedded into a branch and bound-based algorithm for solving the joint location–quality problem. An illustrative example where customers present different distance perception is presented.
ISSN:0570-1864
1432-0592
DOI:10.1007/s00168-014-0598-0