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Management of school locations allowing for free school choice

Listed author(s):
  • 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.
  2. Justine S. Hastings & Thomas J. Kane & Douglas O. Staiger, 2005. "Parental Preferences and School Competition: Evidence from a Public School Choice Program," NBER Working Papers 11805, National Bureau of Economic Research, Inc.
  3. 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.
  4. Bliemer, Michiel C.J. & Rose, John M., 2010. "Construction of experimental designs for mixed logit models allowing for correlation across choice observations," Transportation Research Part B: Methodological, Elsevier, vol. 44(6), pages 720-734, July.
  5. ReVelle, Charles & Murray, Alan T. & Serra, Daniel, 2007. "Location models for ceding market share and shrinking services," Omega, Elsevier, vol. 35(5), pages 533-540, October.
  6. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555, December.
  7. R L Church & O B Schoepfle, 1993. "The Choice Alternative to School Assignment," Environment and Planning B, , vol. 20(4), pages 447-457, August.
  8. Antunes, Antonio & Peeters, Dominique, 2000. "A dynamic optimization model for school network planning," Socio-Economic Planning Sciences, Elsevier, vol. 34(2), pages 101-120, June.
  9. Sven Müller & Knut Haase & Sascha Kless, 2009. "A Multiperiod School Location Planning Approach with Free School Choice," Environment and Planning A, , vol. 41(12), pages 2929-2945, December.
  10. 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.
  11. 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.
  12. Brownstone, David & Train, Kenneth, 1998. "Forecasting new product penetration with flexible substitution patterns," Journal of Econometrics, Elsevier, vol. 89(1-2), pages 109-129, November.
  13. Marianov, Vladimir & Rí­os, Miguel & Icaza, Manuel José, 2008. "Facility location for market capture when users rank facilities by shorter travel and waiting times," European Journal of Operational Research, Elsevier, vol. 191(1), pages 32-44, November.
  14. 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.
  15. 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.
  16. Daniel McFadden & Kenneth Train, 2000. "Mixed MNL models for discrete response," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(5), pages 447-470.
  17. Timmermans, Harry & Borgers, Aloys & van der Waerden, Peter, 1991. "Mother logit analysis of substitution effects in consumer shopping destination choice," Journal of Business Research, Elsevier, vol. 23(4), pages 311-323, December.
  18. 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.
  19. Lemberg, David S. & Church, Richard L., 2000. "The school boundary stability problem over time," Socio-Economic Planning Sciences, Elsevier, vol. 34(3), pages 159-176, September.
  20. Min, Hokey, 1987. "A multiobjective retail service location model for fastfood restaurants," Omega, Elsevier, vol. 15(5), pages 429-441.
  21. Albareda-Sambola, Maria & Fernández, Elena & Saldanha-da-Gama, Francisco, 2011. "The facility location problem with Bernoulli demands," Omega, Elsevier, vol. 39(3), pages 335-345, June.
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