Abstract
Facility location models deal, for the most part, with the location of plants, warehouses, distribution centers, retail facilities among others. In this chapter we review the game theoretical concept of the leader-follower in facility location models which addresses specific circumstances: (i) competitive location of two facilities anywhere on the plane; (ii) covering a large area by chain facilities so that a future competitor will not be able to attract much demand; (iii) competitive location of two facilities applying the gravity (Huff) rule; (iv) competitive location of multiple facilities using the cover-based rule; and (v)locating facilities on the nodes of a network to cover as much demand as possible following a removal of a link by a follower.
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Drezner, T., Drezner, Z. (2017). Leader-Follower Models in Facility Location. In: Mallozzi, L., D'Amato, E., Pardalos, P. (eds) Spatial Interaction Models . Springer Optimization and Its Applications, vol 118. Springer, Cham. https://doi.org/10.1007/978-3-319-52654-6_5
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