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Locating Multiple Competitive Facilities: Spatial Interaction Models with Variable Expenditures

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  • Oded Berman
  • Dmitry Krass

Abstract

We develop a new framework for location of competitive facilities by introducing non-constant expenditure functions into spatial interaction location models. This framework allows us to capture two key effects – market expansion and cannibalization – within the same model. We develop algorithmic approaches for finding optimal or near-optimal solutions for several models that arise from choosing a specific form of the expenditure functions. Copyright Kluwer Academic Publishers 2002

Suggested Citation

  • Oded Berman & Dmitry Krass, 2002. "Locating Multiple Competitive Facilities: Spatial Interaction Models with Variable Expenditures," Annals of Operations Research, Springer, vol. 111(1), pages 197-225, March.
    • Handle: RePEc:spr:annopr:v:111:y:2002:i:1:p:197-225:10.1023/a:1020957904442
    DOI: 10.1023/A:1020957904442
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