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Management of school locations allowing for free school choice

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  • Haase, Knut
  • Müller, Sven

Abstract

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.

Suggested Citation

  • Haase, Knut & Müller, Sven, 2013. "Management of school locations allowing for free school choice," Omega, Elsevier, vol. 41(5), pages 847-855.
  • Handle: RePEc:eee:jomega:v:41:y:2013:i:5:p:847-855
    DOI: 10.1016/j.omega.2012.10.008
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    References listed on IDEAS

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    Cited by:

    1. Murray, Alan T., 2016. "Assessing the impacts of traditional school year calendar start dates," Socio-Economic Planning Sciences, Elsevier, vol. 54(C), pages 28-36.
    2. Haase, Knut & Müller, Sven, 2014. "A comparison of linear reformulations for multinomial logit choice probabilities in facility location models," European Journal of Operational Research, Elsevier, vol. 232(3), pages 689-691.
    3. Berman, Oded & Sanajian, Nima & Wang, Jiamin, 2017. "Location choice and risk attitude of a decision maker," Omega, Elsevier, vol. 66(PA), pages 170-181.

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