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Cover-Based Competitive Location Models

In: Contributions to Location Analysis

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  • Pawel Kalczynski

    (California State University-Fullerton)

Abstract

In competitive location models a set of demand points, each with known buying power exist in a market area. Competing for the buying power in the area is several of one’s chain facilities and competing facilities. If an area has only competitors’ facilities and no chain facilities are present in the area, then the chain is considering an area. The competing facilities attract buying power from demand points, yielding market share (the proportion of total buying power in the area captured by one’s chain). The objective common to all competitive location models is the maximization of market share. Usually, profit is assumed to be a monotonically increasing function of market share. Therefore, maximizing profit is associated with maximizing market share.

Suggested Citation

  • Pawel Kalczynski, 2019. "Cover-Based Competitive Location Models," International Series in Operations Research & Management Science, in: H. A. Eiselt & Vladimir Marianov (ed.), Contributions to Location Analysis, chapter 0, pages 277-320, Springer.
    • Handle: RePEc:spr:isochp:978-3-030-19111-5_12
    DOI: 10.1007/978-3-030-19111-5_12
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    Cited by:

    1. Tammy Drezner & Morton O’Kelly & Zvi Drezner, 2023. "Multipurpose shopping trips and location," Annals of Operations Research, Springer, vol. 321(1), pages 191-208, February.

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