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Competitive multi-facility location games with non-identical firms and convex traffic congestion costs

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  • Konur, Dinçer
  • Geunes, Joseph

Abstract

This paper studies a set of heterogenous competitive firms simultaneously locating facilities at a set of locations to serve a set of markets. Firms incur firm-specific transportation, congestion, and location costs, and market price is linear and decreasing in the amount shipped to the market by all firms. First, firms’ market-supply decisions for given facility locations are characterized using a variational inequality formulation. Then, firms’ location decisions are analyzed. A heuristic method is provided for finding equilibrium locations, and its computational efficiency is compared to a random search method.

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  • Konur, Dinçer & Geunes, Joseph, 2012. "Competitive multi-facility location games with non-identical firms and convex traffic congestion costs," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(1), pages 373-385.
    • Handle: RePEc:eee:transe:v:48:y:2012:i:1:p:373-385
    DOI: 10.1016/j.tre.2011.06.005
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    4. Parajuli, Anubhuti & Kuzgunkaya, Onur & Vidyarthi, Navneet, 2021. "The impact of congestion on protection decisions in supply networks under disruptions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 145(C).
    5. Paul Berglund & Changhyun Kwon, 2014. "Solving a Location Problem of a Stackelberg Firm Competing with Cournot-Nash Firms," Networks and Spatial Economics, Springer, vol. 14(1), pages 117-132, March.
    6. Fatima Khanchouche & Samir Sbabou & Hatem Smaoui & Abderrahmane Ziad, 2024. "Nash Equilibria in Two-Resource Congestion Games with Player-Specific Payoff Functions," Post-Print hal-04506452, HAL.
    7. Hoseinpour, Pooya & Ahmadi-Javid, Amir, 2016. "A profit-maximization location-capacity model for designing a service system with risk of service interruptions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 96(C), pages 113-134.
    8. Ouyang, Yanfeng & Wang, Zhaodong & Yang, Hai, 2015. "Facility location design under continuous traffic equilibrium," Transportation Research Part B: Methodological, Elsevier, vol. 81(P1), pages 18-33.

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