Location models for ceding market share and shrinking services
AbstractNew location models are presented here for exploring the reduction of facilities in a region. The first of these models considers firms ceding market share to competitors under situations of financial exigency. The goal of this model is to cede the least market share, i.e., retain as much of the customer base as possible while shedding costly outlets. The second model considers a firm essentially without competition that must shrink it services for economic reasons. This firm is assumed to close outlets so that the degradation of service is limited. An example is offered within a competitive environment to demonstrate the usefulness of this modeling approach.
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Bibliographic InfoArticle provided by Elsevier in its journal Omega.
Volume (Year): 35 (2007)
Issue (Month): 5 (October)
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Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/375/description#description
Other versions of this item:
- Charles ReVelle & Alan T. Murray & Daniel Serra, 2004. "Location models for ceding market share and shrinking services," Economics Working Papers 753, Department of Economics and Business, Universitat Pompeu Fabra.
- C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
- J80 - Labor and Demographic Economics - - Labor Standards - - - General
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