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The Huff Versus the Pareto-Huff Customer Choice Rules in a Discrete Competitive Location Model

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Computational Science and Its Applications – ICCSA 2018 (ICCSA 2018)

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Abstract

An entering firm wants to compete for market share in a given area by opening some new facilities selected among a finite set of potential locations. Customers are spatially separated and other firms are already operating in that area. In this paper, we analyse the effect of two different customers’ behavior over the optimal solutions, the Huff and the Pareto-Huff customer choice rules. In the first, the customer splits its demand among all competing facilities according to its attractions. In the second, the customer splits its demand among the facilities that are Pareto optimal with respect to the attraction (to be maximized) and the distance (to be minimized), proportionally to their attractions. So, a competitive facility location problem on discrete space is considered in which an entering firm wants to locate a fixed number of new facilities for market share maximization when both Huff and Pareto-Huff customer behavior are used. In order to solve these two models, a heuristic procedure is proposed to obtain the best solutions, and it is compared with a classical genetic algorithm for a set of real geographical coordinates and population data of municipalities in Spain.

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Acknowledgments

This research has been supported by the Ministry of Economy and Competitiveness of Spain under the research project MTM2015-70260-P, and the Fundación Séneca (The Agency of Science and Technology of the Region of Murcia) under the research project 19241/PI/14, and also by a grant (No. MIP-051/2014) from the Research Council of Lithuania.

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Authors and Affiliations

  1. Department Statistics and Operations Research, University of Murcia, Murcia, Spain

    Pascual Fernández & Blas Pelegrín

  2. Institute of Mathematics and Informatics, Vilnius University, Vilnius, Lithuania

    Algirdas Lančinskas & Julius Žilinskas

Authors
  1. Pascual Fernández
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  2. Blas Pelegrín
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  3. Algirdas Lančinskas
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  4. Julius Žilinskas
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Corresponding author

Correspondence to Pascual Fernández .

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Editors and Affiliations

  1. University of Perugia, Perugia, Italy

    Osvaldo Gervasi

  2. University of Basilicata, Potenza, Italy

    Beniamino Murgante

  3. Covenant University, Ota, Nigeria

    Sanjay Misra

  4. Saint Petersburg State University, Saint Petersburg, Russia

    Elena Stankova

  5. Polytechnic University of Bari, Bari, Italy

    Carmelo M. Torre

  6. University of Minho, Braga, Portugal

    Ana Maria A.C. Rocha

  7. Monash University, Clayton, Victoria, Australia

    David Taniar

  8. Kyushu Sangyo University, Fukuoka shi, Fukuoka, Japan

    Bernady O. Apduhan

  9. Politecnico di Bari, Bari, Italy

    Eufemia Tarantino

  10. Myongji University, Yongin, Korea (Republic of)

    Yeonseung Ryu

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Fernández, P., Pelegrín, B., Lančinskas, A., Žilinskas, J. (2018). The Huff Versus the Pareto-Huff Customer Choice Rules in a Discrete Competitive Location Model. In: Gervasi, O., et al. Computational Science and Its Applications – ICCSA 2018. ICCSA 2018. Lecture Notes in Computer Science(), vol 10961. Springer, Cham. https://doi.org/10.1007/978-3-319-95165-2_41

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  • DOI: https://doi.org/10.1007/978-3-319-95165-2_41

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-95164-5

  • Online ISBN: 978-3-319-95165-2

  • eBook Packages: Computer ScienceComputer Science (R0)

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