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Solving a Huff-like Stackelberg location problem on networks

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Abstract

This work deals with a Huff-like Stackelberg problem where the leader wants to locate a facility so that its profit is maximal after the competitor (the follower) has built its facility. We assume that the follower makes a rational decision, maximizing its own profit. The inelastic demand is aggregated into the vertices of a graph, and facilities can be located along the edges. For this computationally hard problem we give a Branch and Bound algorithm using interval analysis and DC bounds. Our computational experience shows that the problem can be solved on medium sized networks in reasonable time.

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Authors and Affiliations

  1. Department of Differential Equations, Budapest University of Technology and Economics, Budapest, Hungary

    Boglárka G.-Tóth & Kristóf Kovács

Authors
  1. Boglárka G.-Tóth
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  2. Kristóf Kovács
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Correspondence to Boglárka G.-Tóth.

Additional information

This work is funded by the Hungarian National Research, Development and Innovation Office—NKFIH, OTKA grant PD115554 and also by the project ICT COST Action TD1207 (EU).

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G.-Tóth, B., Kovács, K. Solving a Huff-like Stackelberg location problem on networks. J Glob Optim 64, 233–247 (2016). https://doi.org/10.1007/s10898-015-0368-2

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  • DOI: https://doi.org/10.1007/s10898-015-0368-2

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