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Competitive location models: A review

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  • Drezner, Zvi
  • Eiselt, H.A.

Abstract

The objective of facility location models is to maximize the profit or minimize the cost of a company that wishes to expand or enter the market. The market share captured by facilities is a function of the distances to the facilities and their attractiveness. The analysis involves how to estimate the market share captured by facilities, where to locate new facilities, how to determine their attractiveness, and reactions of competitors to the actions of locating a facility.

Suggested Citation

  • Drezner, Zvi & Eiselt, H.A., 2024. "Competitive location models: A review," European Journal of Operational Research, Elsevier, vol. 316(1), pages 5-18.
    • Handle: RePEc:eee:ejores:v:316:y:2024:i:1:p:5-18
    DOI: 10.1016/j.ejor.2023.10.030
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    2. Malgorzata Miklas-Kalczynska, 2024. "Extensions to Competitive Facility Location with Multi-purpose Trips," Networks and Spatial Economics, Springer, vol. 24(3), pages 565-588, September.

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