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Competitive location and pricing on networks

In this paper we consider a location and pricing model for a retail firm that wants to enter a spatial market where a competitor firm is already operating as a monopoly with several outlets. The entering firms seeks to determine the optimal uniform mill price and its servers' locations that maximizes profits given the reaction in price of the competitor firm to its entrance. A tabu search procedure is presented to solve the model together with computational experience.

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File URL: http://www.econ.upf.edu/docs/papers/downloads/219.pdf
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Paper provided by Department of Economics and Business, Universitat Pompeu Fabra in its series Economics Working Papers with number 219.

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Date of creation: Jun 1997
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Handle: RePEc:upf:upfgen:219
Contact details of provider: Web page: http://www.econ.upf.edu/

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  1. HANJOUL, Pierre & HANSEN, Pierre & PEETERS, Dominique & THISSE, Jacques-François, . "Uncapacitated plant location under alternative spatial price policies," CORE Discussion Papers RP -875, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  2. HANSEN, Pierre & LABBE, Martine & PEETERS, Dominique & François THISSE, Jacques, . "Facility location analysis," CORE Discussion Papers RP -747, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  3. Daniel Serra & Samuel Ratick & Charles Revelle, 1994. "The maximum capture problem with uncertainty," Economics Working Papers 74, Department of Economics and Business, Universitat Pompeu Fabra.
  4. Karkazis, John, 1989. "Facilities location in a competitive environment: A promethee based multiple criteria analysis," European Journal of Operational Research, Elsevier, vol. 42(3), pages 294-304, October.
  5. Domschke, Wolfgang & Drexl, Andreas, 1985. "Location and layout planning – an international bibliography," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 36418, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
  6. Eiselt, H. A. & Laporte, G., 1989. "Competitive spatial models," European Journal of Operational Research, Elsevier, vol. 39(3), pages 231-242, April.
  7. Daniel Serra & Charles Revelle, 1993. "Market capture by two competitors: The pre-emptive location problem," Economics Working Papers 39, Department of Economics and Business, Universitat Pompeu Fabra.
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