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Management of school locations allowing for free school choice

  • Haase, Knut
  • Müller, Sven

Nearly without exception, we find in literature (school) location models with exogenously given demand. Indeed, we know from a large number of empirical studies that this assumption is unrealistic. Therefore, we propose a discrete location model for school network planning with free school choice that is based on simulated utility values for a large average sample. The objective is to maximize the standardized expected utility of all students taking into account capacity constraints and a given budget for the school network. The utility values of each student for the schools are derived from a random utility model (RUM). The proposed approach is general in terms of the RUM used. Moreover, we do not have to make assumptions about the functional form of the demand function. Our approach, which combines econometric and mathematical methods, is a linear 0–1 program although we consider endogenous demand by a highly non-linear function. The proposed program enables practicing managers to consider student demand adequately within their decision making. By a numerical investigation we show that this approach enables us to solve instances of real size optimally – or at least close to optimality – within few minutes using GAMS/Cplex.

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Article provided by Elsevier in its journal Omega.

Volume (Year): 41 (2013)
Issue (Month): 5 ()
Pages: 847-855

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Handle: RePEc:eee:jomega:v:41:y:2013:i:5:p:847-855
DOI: 10.1016/
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  1. Daniel Serra & Rosa Colomé, 2001. "articles: Consumer choice and optimal locations models: Formulations and heuristics," Papers in Regional Science, Springer;Regional Science Association International, vol. 80(4), pages 439-464.
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  3. Pelegrín, Blas & Fernández, Pascual & Dolores García Pérez, María & Cano Hernández, Saúl, 2012. "On the location of new facilities for chain expansion under delivered pricing," Omega, Elsevier, vol. 40(2), pages 149-158, April.
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  7. R L Church & O B Schoepfle, 1993. "The Choice Alternative to School Assignment," Environment and Planning B, SAGE Publishing, vol. 20(4), pages 447-457, August.
  8. Sven Müller & Knut Haase & Sascha Kless, 2009. "A multiperiod school location planning approach with free school choice," Environment and Planning A, Pion Ltd, London, vol. 41(12), pages 2929-2945, December.
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  13. Min, Hokey, 1987. "A multiobjective retail service location model for fastfood restaurants," Omega, Elsevier, vol. 15(5), pages 429-441.
  14. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521747387, April.
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  17. Lankford R. H. & Lee E. S. & Wyckoff J. H., 1995. "An Analysis of Elementary and Secondary School Choice," Journal of Urban Economics, Elsevier, vol. 38(2), pages 236-251, September.
  18. Kingsley E. Haynes & Stewart Fotheringham, 1990. "The Impact of Space on the Application Of Discrete Choice Models," The Review of Regional Studies, Southern Regional Science Association, vol. 20(2), pages 39-49, Spring.
  19. R L Church & O B Schoepfle, 1993. "The choice alternative to school assignment," Environment and Planning B: Planning and Design, Pion Ltd, London, vol. 20(4), pages 447-457, July.
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  21. Redondo, Juana L. & Fernández, José & Arrondo, Aránzazu G. & García, Inmaculada & Ortigosa, Pilar M., 2012. "Fixed or variable demand? Does it matter when locating a facility?," Omega, Elsevier, vol. 40(1), pages 9-20, January.
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