A bilevel uncapacitated location/pricing problem with Hotelling access costs in one-dimensional space
Pınar, Mustafa Ç.
Information Systems, Logistics, and Supply Chain
International Conference on Information Systems, Logistics and Supply Chain
Item Usage Stats
MetadataShow full item record
We formulate a spatial pricing problem as bilevel non-capacitated location: a leader first decides which facilities to open and sets service prices taking competing offers into account; then, customers make individual decisions minimizing individual costs that include access charges in the spirit of Hotelling. Both leader and customers are assumed to be risk-neutral. For non-metric costs (i.e., when access costs do not satisfy the triangle inequality), the problem is NP-hard even if facilities can be opened at no fixed cost. We describe an algorithm for solving the Euclidean 1-dimensional case (i.e., with access cost defined by the Euclidean norm on a line) with fixed opening costs and a single competing facility.
Algorithm for solving
Published Version (Please cite this version)http://ils2016conference.com/wp-content/uploads/2015/03/ILS2016_TB01_4.pdf
Showing items related by title, author, creator and subject.
Yilmaz, Emre; Elbaşı, Sanem; Ferhatosmanoğlu, Hakan (ACM, 2017-08)Deriving meaningful insights from location data helps businesses make better decisions. One critical decision made by a business is choosing a location for its new facility. Optimal location queries ask for a location to ...
Calik, H.; Tansel, B. C. (Elsevier, 2013)We give a review of existing methods for solving the absolute and vertex restricted p-center problems on networks and propose a new integer programming formulation, a tightened version of this formulation and a new method ...
Ilkhechi, A. R.; Korpeoglu, I.; Güdükbay U.; Ulusoy, Ö. (Academic Press, 2017)Location service is an essential prerequisite for mobile wireless ad hoc networks (MANETs) in which the underlying routing protocol leverages physical location information of sender and receiver nodes. Fulfillment of this ...