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Bi-objective set covering location model for two-tier shopping centers based on two-level consumer demand

Author

Listed:
  • Wang, Fei
  • Chen, Jianyu
  • Zhang, Houlong
  • Wang, Ke

Abstract

The strategic location of shopping centers is crucial to the economic interests of commercial investors and significantly influences urban residents' welfare and the spatial configuration of urban commercial systems. This study applies an optimization model to the shopping center location problem by constructing a bi-objective set-covering location model for two-tier shopping centers based on two -level consumer demand. The model simultaneously considers the interests of both investors and consumers, aiming to trade-off facility construction costs and consumer travel costs with limited capacity constraints. To efficiently solve the problem, an improved NSGA-II algorithm incorporating a chromosome-archiving mechanism is proposed, and its performance is validated against a reference frontier generated by the ε-constraint method. Empirical analysis based on Xi'an's metro network (163 stations) demonstrates the cost ratio parameter (α) and service radius ratio parameter (γ) exhibit high sensitivity, whereas the capacity ratio parameter (β) has a relatively minor effect on the optimization outcomes.

Suggested Citation

  • Wang, Fei & Chen, Jianyu & Zhang, Houlong & Wang, Ke, 2026. "Bi-objective set covering location model for two-tier shopping centers based on two-level consumer demand," Research in Transportation Economics, Elsevier, vol. 115(C).
    • Handle: RePEc:eee:retrec:v:115:y:2026:i:c:s0739885925001799
    DOI: 10.1016/j.retrec.2025.101696
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    Keywords

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    JEL classification:

    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory

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