A New Look at Spatially Competitive Facility Location Models
- 47 Downloads
This paper presents some new formulations of models for locating a firm’s production facilities while simultaneously determining production levels at these facilities so as to maximize the firm’s profit. Existing firms, as well as the new entrant, are assumed to act in accordance with an appropriate model of spatial equilibrium. A heuristic algorithm is proposed.
KeywordsVariational Inequality Location Model Spatial Competition Spatial Equilibrium Total Variable Cost
Unable to display preview. Download preview PDF.
- Harker, Patrick T., “Alternative Models of Spatial Competition” Department of Decision Sciences, The Wharton School, University of Pennsylvania, Working Paper 85-01-04 (1984b).Google Scholar
- Kinderlehrer, D. and G. Stampacchia, An Introduction to Variational Inequalities and their Applications, Academic Press (1980).Google Scholar
- Tobin, Roger L., “Sensitivity Analysis for Variational Inequalities”, forthcoming, Journal of Optimization Theory and Applications.Google Scholar
- Tobin, Roger L. and Terry L. Freisz, “Spatial Competition Facility Location Models: Definition, Formulation and Solution Approach” forthcoming in Annals of Operations Research: Location Theory and Applications (Proceedings of ISOLDE III, International Symposium on Locational Decisions, Boston, Massachusetts, June 1984, in press).Google Scholar