Competitive location with random utilities

Competitive location with random utilities

0.00 Avg rating0 Votes
Article ID: iaor1989962
Country: United States
Volume: 23
Issue: 4
Start Page Number: 244
End Page Number: 252
Publication Date: Nov 1989
Journal: Transportation Science
Authors: , , ,
Abstract:

This paper studies m firms competing on location over a finite subset of vertices of a graph, with the aim of attracting consumers located at some vertices of this graph. It is shown that firm i (i=1,...,m) wants to establish its mi facilities at the mi-median of the graph whose vertices are weighted by consumers’ purchasing power provided that consumers’ tastes are sufficiently dispersed in probabilistic terms among the different firms. Examples based on some standard network configurations illustrate the property.

Reviews

Required fields are marked *. Your email address will not be published.