IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v210y2011i3p588-593.html
   My bibliography  Save this article

On Nash equilibria of a competitive location-design problem

Author

Listed:
  • Sáiz, M. Elena
  • Hendrix, Eligius M.T.
  • Pelegrín, Blas

Abstract

The location-quality decision of a facility for two competing suppliers in a new market is described by a Huff-like attraction model where the profit that can be reached by each supplier depends on the actions of its competitor. We study the profit maximization problem of the suppliers under binary and proportional customer choice rules, assuming that they make their decisions simultaneously. The main questions are: what are the possible Nash equilibria in such a situation, how are they characterised and by which computational methods can they be determined? We report on findings.

Suggested Citation

  • Sáiz, M. Elena & Hendrix, Eligius M.T. & Pelegrín, Blas, 2011. "On Nash equilibria of a competitive location-design problem," European Journal of Operational Research, Elsevier, vol. 210(3), pages 588-593, May.
  • Handle: RePEc:eee:ejores:v:210:y:2011:i:3:p:588-593
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0377-2217(10)00634-X
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Plastria, Frank, 2001. "Static competitive facility location: An overview of optimisation approaches," European Journal of Operational Research, Elsevier, vol. 129(3), pages 461-470, March.
    2. J. Redondo & J. Fernández & I. García & P. Ortigosa, 2010. "Heuristics for the facility location and design (1|1)-centroid problem on the plane," Computational Optimization and Applications, Springer, vol. 45(1), pages 111-141, January.
    3. H. A. Eiselt & Gilbert Laporte & Jacques-François Thisse, 1993. "Competitive Location Models: A Framework and Bibliography," Transportation Science, INFORMS, vol. 27(1), pages 44-54, February.
    4. Fernandez, Jose & Pelegri'n, Blas & Plastria, Frank & Toth, Boglarka, 2007. "Solving a Huff-like competitive location and design model for profit maximization in the plane," European Journal of Operational Research, Elsevier, vol. 179(3), pages 1274-1287, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dilek, Hande & Karaer, Özgen & Nadar, Emre, 2018. "Retail location competition under carbon penalty," European Journal of Operational Research, Elsevier, vol. 269(1), pages 146-158.
    2. Eligius M. T. Hendrix, 2016. "On competition in a Stackelberg location-design model with deterministic supplier choice," Annals of Operations Research, Springer, vol. 246(1), pages 19-30, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Redondo, Juana L. & Fernández, José & Arrondo, Aránzazu G. & García, Inmaculada & Ortigosa, Pilar M., 2012. "Fixed or variable demand? Does it matter when locating a facility?," Omega, Elsevier, vol. 40(1), pages 9-20, January.
    2. Fernández, José & Hendrix, Eligius M.T., 2013. "Recent insights in Huff-like competitive facility location and design," European Journal of Operational Research, Elsevier, vol. 227(3), pages 581-584.
    3. Blanquero, Rafael & Carrizosa, Emilio & G.-Tóth, Boglárka & Nogales-Gómez, Amaya, 2016. "p-facility Huff location problem on networks," European Journal of Operational Research, Elsevier, vol. 255(1), pages 34-42.
    4. Eligius M. T. Hendrix, 2016. "On competition in a Stackelberg location-design model with deterministic supplier choice," Annals of Operations Research, Springer, vol. 246(1), pages 19-30, November.
    5. Haase, Knut & Hoppe, Mirko, 2008. "Standortplanung unter Wettbewerb - Teil 1: Grundlagen," Discussion Papers 2/2008, Technische Universität Dresden, "Friedrich List" Faculty of Transport and Traffic Sciences, Institute of Transport and Economics.
    6. Martha-Selene Casas-Ramírez & José-Fernando Camacho-Vallejo & Juan A. Díaz & Dolores E. Luna, 2020. "A bi-level maximal covering location problem," Operational Research, Springer, vol. 20(2), pages 827-855, June.
    7. Buechel, Berno & Roehl, Nils, 2015. "Robust equilibria in location games," European Journal of Operational Research, Elsevier, vol. 240(2), pages 505-517.
    8. Fernandez, Jose & Pelegri'n, Blas & Plastria, Frank & Toth, Boglarka, 2007. "Solving a Huff-like competitive location and design model for profit maximization in the plane," European Journal of Operational Research, Elsevier, vol. 179(3), pages 1274-1287, June.
    9. Díaz-Báñez, J.M. & Heredia, M. & Pelegrín, B. & Pérez-Lantero, P. & Ventura, I., 2011. "Finding all pure strategy Nash equilibria in a planar location game," European Journal of Operational Research, Elsevier, vol. 214(1), pages 91-98, October.
    10. Konur, Dinçer & Geunes, Joseph, 2012. "Competitive multi-facility location games with non-identical firms and convex traffic congestion costs," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(1), pages 373-385.
    11. Papathanasiou, Jason & Manos, Basil D., 2007. "An approximation algorithm for the location of dairy enterprises under time constraints," European Journal of Operational Research, Elsevier, vol. 182(3), pages 1479-1487, November.
    12. Sven Müller & Knut Haase & Sascha Kless, 2009. "A Multiperiod School Location Planning Approach with Free School Choice," Environment and Planning A, , vol. 41(12), pages 2929-2945, December.
    13. Gunhak Lee & Morton E. O'Kelly, 2009. "Exploring Locational Equilibria In A Competitive Broadband Access Market: Theoretical Modeling Approach," Journal of Regional Science, Wiley Blackwell, vol. 49(5), pages 953-975, December.
    14. Wenxuan Shan & Qianqian Yan & Chao Chen & Mengjie Zhang & Baozhen Yao & Xuemei Fu, 2019. "Optimization of competitive facility location for chain stores," Annals of Operations Research, Springer, vol. 273(1), pages 187-205, February.
    15. Casas-Ramírez, Martha-Selene & Camacho-Vallejo, José-Fernando & Martínez-Salazar, Iris-Abril, 2018. "Approximating solutions to a bilevel capacitated facility location problem with customer's patronization toward a list of preferences," Applied Mathematics and Computation, Elsevier, vol. 319(C), pages 369-386.
    16. Saidani, Nasreddine & Chu, Feng & Chen, Haoxun, 2012. "Competitive facility location and design with reactions of competitors already in the market," European Journal of Operational Research, Elsevier, vol. 219(1), pages 9-17.
    17. Rafael Suárez‐Vega & Dolores R. Santos‐Peñate & Pablo Dorta‐González, 2004. "Competitive Multifacility Location on Networks: the (r∣Xp)‐Medianoid Problem," Journal of Regional Science, Wiley Blackwell, vol. 44(3), pages 569-588, August.
    18. Blas Pelegrín & Rafael Suárez-Vega & Saúl Cano, 2012. "Isodistant points in competitive network facility location," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 20(3), pages 639-660, October.
    19. Abdullah Dasci & Gilbert Laporte, 2005. "A Continuous Model for Multistore Competitive Location," Operations Research, INFORMS, vol. 53(2), pages 263-280, April.
    20. Cabello, S. & Díaz-Báñez, J.M. & Langerman, S. & Seara, C. & Ventura, I., 2010. "Facility location problems in the plane based on reverse nearest neighbor queries," European Journal of Operational Research, Elsevier, vol. 202(1), pages 99-106, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ejores:v:210:y:2011:i:3:p:588-593. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eor .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.