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Competitive location with random utilities

Author

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  • de PALMA, André
  • GINSBURGH, Victor
  • LABBE, Martine
  • THISSE, Jacques-François

Abstract

This paper studies m firms competing on location over a finite subset of vertices of a graph, with the aim of attracting consumers located at some vertices of this graph. It is shown that firm i ( i = 1, ..., m ) wants to establish its m i facilities at the m i -median of the graph whose vertices are weighted by consumers' purchasing power provided that consumers' tastes are sufficiently dispersed in probabilistic terms among the different firms. Examples based on some standard network configurations illustrate the property.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • de PALMA, André & GINSBURGH, Victor & LABBE, Martine & THISSE, Jacques-François, 1990. "Competitive location with random utilities," LIDAM Reprints CORE 877, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvrp:877
    DOI: 10.1287/trsc.23.4.244
    Note: In : Transportation Science, 23(4), 244-252, 1990
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    Cited by:

    1. Drezner, Zvi & Eiselt, H.A., 2024. "Competitive location models: A review," European Journal of Operational Research, Elsevier, vol. 316(1), pages 5-18.
    2. Abdullah Dasci & Gilbert Laporte, 2005. "A Continuous Model for Multistore Competitive Location," Operations Research, INFORMS, vol. 53(2), pages 263-280, April.
    3. Marianov, Vladimir & Rí­os, Miguel & Icaza, Manuel José, 2008. "Facility location for market capture when users rank facilities by shorter travel and waiting times," European Journal of Operational Research, Elsevier, vol. 191(1), pages 32-44, November.
    4. H. A. Eiselt & Vladimir Marianov, 2020. "Stability of utility functions and apportionment rules in location models," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 28(3), pages 772-792, October.
    5. Benati, Stefano & Hansen, Pierre, 2002. "The maximum capture problem with random utilities: Problem formulation and algorithms," European Journal of Operational Research, Elsevier, vol. 143(3), pages 518-530, December.

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