OR Spectrum

, Volume 31, Issue 3, pp 555–571 | Cite as

Maximal covering location problem with price decision for revenue maximization in a competitive environment

  • Frank Plastria
  • Lieselot Vanhaverbeke
Regular Article


In this article, we extend the classical maximal covering model in a competitive environment by including a price decision. We formulate a revenue maximization model and propose two procedures to solve it. By a careful examination of the relationships between the maximal covering problems for different prices, we reveal interesting properties of the deduced revenue maximization model, leading to a full enumeration solution approach. With the help of two more properties we develop a second, more intelligent solution procedure. Computational experiments show promising results for a small, medium and large case study.


Competitive location Spatial pricing Revenue maximization Maximal covering problem Mixed integer programming 


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Copyright information

© Springer-Verlag 2008

Authors and Affiliations

  1. 1.MOSI, Department of Mathematics, O.R., Stat. and Inf. Syst. for ManagementVrije Universiteit BrusselBrusselsBelgium

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