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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.

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File URL: http://mpra.ub.uni-muenchen.de/21794/
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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 21794.

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Date of creation: 05 May 1992
Date of revision: 21 Feb 2010
Publication status: Published in Proceedings of the IV World Congress of the R.S.A.I. 52.1(1992): pp. 87-118
Handle: RePEc:pra:mprapa:21794

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Keywords: Locational planning; scenario-based; utility function; expected loss;

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  1. 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 419-40, June.
  2. A Reggiani & S Stefani, 1986. "Aggregation in decisionmaking: a unifying approach," Environment and Planning A, Pion Ltd, London, vol. 18(8), pages 1115-1125, August.
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