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Location and pricing of competitive service providers for post-disaster relief

Author

Listed:
  • Fan Xiao
  • Jing-Xian Zhou
  • Zhi-Hua Hu

Abstract

In post-disaster relief, competitive emergency service providers place their stations quickly for timely rescue activities. To shorten the rescue time of the emergency services and ensure the profit of emergency service providers, an extended game model is formulated to solve the problem based on the classical Hotelling model. In the new model, logistics cost is paid by service providers who can obtain honour profit through providing service for the victims. The victims endure waiting times that consist of periods of response time and travelling time. The waiting times affect the victims' decisions and affect the equilibrium prices and profits. Numerical analysis implies that service providers obtain the highest profits on their equilibrium price when their locations are decided. Furthermore, locating both players near the ends of the disaster-affected line city is beneficial to increase the gross profits.

Suggested Citation

  • Fan Xiao & Jing-Xian Zhou & Zhi-Hua Hu, 2017. "Location and pricing of competitive service providers for post-disaster relief," International Journal of Industrial and Systems Engineering, Inderscience Enterprises Ltd, vol. 25(1), pages 14-34.
    • Handle: RePEc:ids:ijisen:v:25:y:2017:i:1:p:14-34
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