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A Kernel Search Matheuristic to Solve The Discrete Leader-Follower Location Problem

Author

Listed:
  • Dolores R. Santos-Peñate

    (Universidad de Las Palmas de G.C.)

  • Clara M. Campos-Rodríguez

    (Universidad de La Laguna)

  • José A. Moreno-Pérez

    (Universidad de La Laguna)

Abstract

In the leader-follower, (r|p)-centroid or Stackelberg location problem, two players sequentially enter the market and compete to provide goods or services. This paper considers this competitive facility location problem in a discrete space. To solve it, the linear programming formulations for the leader and the follower are integrated into an algorithm which, in an iterative process, finds a solution by solving a sequence of these linear problems. We propose a matheuristic procedure that provides solutions for the leader via a kernel search algorithm. Taking into account binary and S-shaped customer choice rules, we present the computational results obtained and compare the exact algorithm with two versions of the kernel search procedure.

Suggested Citation

  • Dolores R. Santos-Peñate & Clara M. Campos-Rodríguez & José A. Moreno-Pérez, 2020. "A Kernel Search Matheuristic to Solve The Discrete Leader-Follower Location Problem," Networks and Spatial Economics, Springer, vol. 20(1), pages 73-98, March.
    • Handle: RePEc:kap:netspa:v:20:y:2020:i:1:d:10.1007_s11067-019-09472-7
    DOI: 10.1007/s11067-019-09472-7
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    References listed on IDEAS

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