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Locational planning on scenario-based networks

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  • Photis, Yorgos N.

Abstract

More and more frequently locational planners are faced with the problem of decision making under the condition of uncertainty. In this paper a methodological framework is presented for solving Location - Allocation problems, through the application of the multinomial logit model to data derived from the modification of the characteristics of a given network. The study differs from earlier work in two aspects: First, a utility junction, as a measure of relative attractiveness, is implemented, in order to assign realization probabilities to each alternative scenario. Second, the decisions are made through the utilization of two system - performance criteria. The expected loss and the minimax loss criterion of the optimal solution of each future scenario generated by the decision maker during the problem - solving procedure of th e approach.

Suggested Citation

  • Photis, Yorgos N., 1992. "Locational planning on scenario-based networks," MPRA Paper 21794, University Library of Munich, Germany, revised 21 Feb 2010.
    • Handle: RePEc:pra:mprapa:21794
    as

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    File URL: https://mpra.ub.uni-muenchen.de/21794/1/MPRA_paper_21794.pdf
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    References listed on IDEAS

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    1. A Reggiani & S Stefani, 1986. "Aggregation in Decisionmaking: A Unifying Approach," Environment and Planning A, , vol. 18(8), pages 1115-1125, August.
    2. Jacques H. Drèze (ed.), 1974. "Allocation under Uncertainty: Equilibrium and Optimality," International Economic Association Series, Palgrave Macmillan, number 978-1-349-01989-2, December.
    3. de Palma, Andre & Myers, Gordon M & Papageorgiou, Yorgos Y, 1994. "Rational Choice under an Imperfect Ability to Choose," American Economic Review, American Economic Association, vol. 84(3), pages 419-440, June.
    4. James G. March, 1978. "Bounded Rationality, Ambiguity, and the Engineering of Choice," Bell Journal of Economics, The RAND Corporation, vol. 9(2), pages 587-608, Autumn.
    5. Jacques H. Drèze, 1974. "Axiomatic Theories of Choice, Cardinal Utility and Subjective Probability: a review," International Economic Association Series, in: Jacques H. Drèze (ed.), Allocation under Uncertainty: Equilibrium and Optimality, chapter 1, pages 3-23, Palgrave Macmillan.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Locational planning; scenario-based; utility function; expected loss;
    All these keywords.

    JEL classification:

    • R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • F47 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Forecasting and Simulation: Models and Applications

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