Locating multiple competitive facilities: Spatial interaction models with variable expenditures

Locating multiple competitive facilities: Spatial interaction models with variable expenditures

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Article ID: iaor20031324
Country: Netherlands
Volume: 111
Issue: 1
Start Page Number: 197
End Page Number: 225
Publication Date: Mar 2002
Journal: Annals of Operations Research
Authors: ,
Abstract:

We develop a new framework for location of competitive facilities by introducing non-constant expenditure functions into spatial interaction location models. This framework allows us to capture two key effects – market expansion and cannibalization – within the same model. We develop algorithmic approaches for finding optimal or near-optimal solutions for several models that arise from choosing a specific form of the expenditure functions.

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