Uncapacitated plant location under alternative spatial price policies
AbstractGiven a spatial system of clients' demand functions, this paper proposes solution methods to determine the price(s), the number, the locations, the sizes, and the market areas of the plants supplying the clients in order to maximize the profit of the firm. Three alternative spatial price policies are considered: (i) uniform mill pricing, in which the same price is charged to the clients at the plant door, (ii) uniform delivered pricing, in which clients pay the same delivered price irrespective of their locations, and (iii) spatial discriminatory pricing, which is such that the firm sets client-specific prices based on their locations. Computational results are reported.
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Bibliographic InfoPaper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 1988019.
Date of creation: 01 Jan 1988
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- Pierre Hanjoul & Pierre Hansen & Dominique Peeters & Jacques-Francois Thisse, 1990. "Uncapacitated Plant Location Under Alternative Spatial Price Policies," Management Science, INFORMS, vol. 36(1), pages 41-57, January.
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- Tombak, Mihkel M., 1995. "Multinational plant location as a game of timing," European Journal of Operational Research, Elsevier, vol. 86(3), pages 434-451, November.
- Böhme, Enrico & Müller, Christopher, 2012. "Monopolistic Location Choice in Two-Sided Industries," MPRA Paper 41761, University Library of Munich, Germany.
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- Bai, Yun & Ouyang, Yanfeng & Pang, Jong-Shi, 2012. "Biofuel supply chain design under competitive agricultural land use and feedstock market equilibrium," Energy Economics, Elsevier, vol. 34(5), pages 1623-1633.
- Daniel Serra & Charles Revelle, 1997. "Competitive location and pricing on networks," Economics Working Papers 219, Department of Economics and Business, Universitat Pompeu Fabra.
- Phillip Lederer, 2011. "Competitive Delivered Pricing by Mail-Order and Internet Retailers," Networks and Spatial Economics, Springer, vol. 11(2), pages 315-342, June.
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