Competitive location and pricing on networks
AbstractIn this paper we consider a location and pricing model for a retail firm that wants to enter a spatial market where a competitor firm is already operating as a monopoly with several outlets. The entering firms seeks to determine the optimal uniform mill price and its servers' locations that maximizes profits given the reaction in price of the competitor firm to its entrance. A tabu search procedure is presented to solve the model together with computational experience.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Department of Economics and Business, Universitat Pompeu Fabra in its series Economics Working Papers with number 219.
Date of creation: Jun 1997
Date of revision:
Contact details of provider:
Web page: http://www.econ.upf.edu/
Competitive location; discrete network location; spatial pricing;
Find related papers by JEL classification:
- C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
- R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis
- L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Eiselt, H. A. & Laporte, G., 1989. "Competitive spatial models," European Journal of Operational Research, Elsevier, vol. 39(3), pages 231-242, April.
- D Serra & S Ratick & C ReVelle, 1996.
"The maximum capture problem with uncertainty,"
Environment and Planning B: Planning and Design,
Pion Ltd, London, vol. 23(1), pages 49-59, January.
- Pierre Hanjoul & Pierre Hansen & Dominique Peeters & Jacques-Francois Thisse, 1990.
"Uncapacitated Plant Location Under Alternative Spatial Price Policies,"
INFORMS, vol. 36(1), pages 41-57, January.
- Hanjoul, P. & Hansen, P. & Peeters, D. & Thisse, J.-F., 1988. "Uncapacitated plant location under alternative spatial price policies," CORE Discussion Papers 1988019, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- HANJOUL, Pierre & HANSEN, Pierre & PEETERS, Dominique & THISSE, Jacques-François, . "Uncapacitated plant location under alternative spatial price policies," CORE Discussion Papers RP -875, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Domschke, Wolfgang & Drexl, Andreas, 1985. "Location and layout planning – an international bibliography," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 36418, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
- Daniel Serra & Charles Revelle, 1993. "Market capture by two competitors: The pre-emptive location problem," Economics Working Papers 39, Department of Economics and Business, Universitat Pompeu Fabra.
- Karkazis, John, 1989. "Facilities location in a competitive environment: A promethee based multiple criteria analysis," European Journal of Operational Research, Elsevier, vol. 42(3), pages 294-304, October.
- HANSEN, Pierre & LABBE, Martine & PEETERS, Dominique & François THISSE, Jacques, . "Facility location analysis," CORE Discussion Papers RP -747, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- 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, vol. 20(3), pages 639-660, October.
- María García & Blas Pelegrín & Pascual Fernández, 2011. "Location strategy for a firm under competitive delivered prices," The Annals of Regional Science, Springer, vol. 47(1), pages 1-23, August.
- Rosa Colomé & Helena Ramalhinho-Lourenço & Daniel Serra, 2003. "A new chance-constrained maximum capture location problem," Economics Working Papers 661, Department of Economics and Business, Universitat Pompeu Fabra.
- Verónica Durán-Carbó & Charles ReVelle & Daniel Serra, 2006. "Spatial market expansion through mergers," Economics Working Papers 960, Department of Economics and Business, Universitat Pompeu Fabra.
- María Pérez & Pascual Hernández & Blas Pelegrín, 2004. "On price competition in location-price models with spatially separated markets," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer, vol. 12(2), pages 351-374, December.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.