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Solving a Huff-like Stackelberg location problem on networks

Author

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  • Boglárka G.-Tóth

    (Budapest University of Technology and Economics)

  • Kristóf Kovács

    (Budapest University of Technology and Economics)

Abstract

This work deals with a Huff-like Stackelberg problem where the leader wants to locate a facility so that its profit is maximal after the competitor (the follower) has built its facility. We assume that the follower makes a rational decision, maximizing its own profit. The inelastic demand is aggregated into the vertices of a graph, and facilities can be located along the edges. For this computationally hard problem we give a Branch and Bound algorithm using interval analysis and DC bounds. Our computational experience shows that the problem can be solved on medium sized networks in reasonable time.

Suggested Citation

  • Boglárka G.-Tóth & Kristóf Kovács, 2016. "Solving a Huff-like Stackelberg location problem on networks," Journal of Global Optimization, Springer, vol. 64(2), pages 233-247, February.
  • Handle: RePEc:spr:jglopt:v:64:y:2016:i:2:d:10.1007_s10898-015-0368-2
    DOI: 10.1007/s10898-015-0368-2
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    References listed on IDEAS

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    1. R. Horst & N. V. Thoai, 1999. "DC Programming: Overview," Journal of Optimization Theory and Applications, Springer, vol. 103(1), pages 1-43, October.
    2. Saidani, Nasreddine & Chu, Feng & Chen, Haoxun, 2012. "Competitive facility location and design with reactions of competitors already in the market," European Journal of Operational Research, Elsevier, vol. 219(1), pages 9-17.
    3. Rafael Blanquero & Emilio Carrizosa & Amaya Nogales-Gómez & Frank Plastria, 2014. "Single-facility huff location problems on networks," Annals of Operations Research, Springer, vol. 222(1), pages 175-195, November.
    4. Küçükaydin, Hande & Aras, Necati & Kuban AltInel, I., 2011. "Competitive facility location problem with attractiveness adjustment of the follower: A bilevel programming model and its solution," European Journal of Operational Research, Elsevier, vol. 208(3), pages 206-220, February.
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    Cited by:

    1. Arbib, Claudio & Pınar, Mustafa Ç. & Tonelli, Matteo, 2020. "Competitive location and pricing on a line with metric transportation costs," European Journal of Operational Research, Elsevier, vol. 282(1), pages 188-200.

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