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Competitive Location on a Network

Gregory Dobson and Uday S. Karmarkar
Operations Research
Vol. 35, No. 4 (Jul. - Aug., 1987), pp. 565-574
Published by: INFORMS
Stable URL: http://www.jstor.org/stable/170502
Page Count: 10
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Competitive Location on a Network
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Abstract

In this paper we study the problem of locating facilities on a network in the presence of competition. Customers at each node in the network choose from the available facilities so as to minimize the distance traveled. The problem is to find a set of facilities that is stable in the sense that each facility is economically viable and no competitor can successfully open any facilities. We define several versions of stability and establish certain relationships between them. We then present integer programming formulations that identify stable sets, and describe an enumeration algorithm for constructing a profit-maximizing stable set.

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