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Bilevel competitive facility location and pricing problems

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Abstract

We propose new models for competitive facility location and pricing as bilevel Boolean linear programming problems. We obtain results that characterize the complexity of the problem where a monopolist’s profit on each of the markets is defined with a monotone nonincreasing function of the servicing cost. For this problem, we also propose two approximate algorithms based on the ideas of alternating heuristics and local search. We give results of a computational experiment that show a possibility for fast computation of approximate solutions.

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Authors and Affiliations

  1. Sobolev Institute of Mathematics, Siberian Branch, Russian Academy of Sciences, Novosibirsk, Russia

    A. A. Panin & A. V. Plyasunov

  2. Novosibirsk State University, Novosibirsk, Russia

    A. A. Panin, M. G. Pashchenko & A. V. Plyasunov

Authors
  1. A. A. Panin
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  2. M. G. Pashchenko
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  3. A. V. Plyasunov
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Correspondence to A. A. Panin.

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Original Russian Text © A.A. Panin, M.G. Pashchenko, A.V. Plyasunov, 2014, published in Avtomatika i Telemekhanika, 2014, No. 4, pp. 153–169.

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Panin, A.A., Pashchenko, M.G. & Plyasunov, A.V. Bilevel competitive facility location and pricing problems. Autom Remote Control 75, 715–727 (2014). https://doi.org/10.1134/S0005117914040110

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  • DOI: https://doi.org/10.1134/S0005117914040110

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