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Competitive Location on a Network

Author

Listed:
  • Gregory Dobson

    (University of Rochester, Rochester, New York)

  • Uday S. Karmarkar

    (University of Rochester, Rochester, New York)

Abstract

In this paper we study the problem of locating facilities on a network in the presence of competition. Customers at each node in the network choose from the available facilities so as to minimize the distance traveled. The problem is to find a set of facilities that is stable in the sense that each facility is economically viable and no competitor can successfully open any facilities. We define several versions of stability and establish certain relationships between them. We then present integer programming formulations that identify stable sets, and describe an enumeration algorithm for constructing a profit-maximizing stable set.

Suggested Citation

  • Gregory Dobson & Uday S. Karmarkar, 1987. "Competitive Location on a Network," Operations Research, INFORMS, vol. 35(4), pages 565-574, August.
    • Handle: RePEc:inm:oropre:v:35:y:1987:i:4:p:565-574
    DOI: 10.1287/opre.35.4.565
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