Annals of Operations Research

, Volume 167, Issue 1, pp 297-306

First online:

Efficient solution approaches for a discrete multi-facility competitive interaction model

  • Robert AboolianAffiliated withCollege of Business Administration, California State University San Marcos
  • , Oded BermanAffiliated withRotman School of Management, University of Toronto
  • , Dmitry KrassAffiliated withRotman School of Management, University of Toronto Email author 

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In this paper, we present efficient solution approaches for discrete multi-facility competitive interaction model. Applying the concept of “Tangent Line Approximation” presented by the authors in their previous work, we develop efficient computational approaches—both exact and approximate (with controllable error bound α). Computational experiments show that the approximate approach (with small α) performs extremely well solving large scale problems while the exact approach performs very well for small to medium-sized problems.


Competitive facility location Spatial interaction models Nonseparable convex knapsack problem Approximation