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: | Berman Oded, Krass Dmitry |
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.