Abstract
Models for locating a firm's production facilities while simultaneously determining production levels at these facilities and shipping patterns so as to maximize the firm's profits are presented. In these models, existing firms, are assumed to act in accordance with an appropriate model of spatial equilibrium. A proof of existence of a solution to the combined location-equilibrium problem is provided.
Similar content being viewed by others
References
S. Dafermos and A. Nagurney, Sensitivity analysis for the general spatial economic equilibrium problem, Operations Research 32(5) (1984) 1069.
D. Erlenkotter, Facility location with price-sensitive demands: private, public and quasi-public, Management Science 24(4) (1977) 378.
T.L. Friesz, P.T. Harker and R.L. Tobin, Alternative algorithms for the general network spatial price equilibrium problem, Journal of Regional Science 24(4) (1984) 475.
T.L. Friesz, T. Miller and R.L. Tobin, Algorithms for spatially competitive network facility location, Environment and Planning B 15 (1988) forthcoming.
T.L. Friesz, R.L. Tobin, T.E. Smith and P.T. Harker, A nonlinear complementarity formulation and solution procedure for the general derived demand network equilibrium problem, Journal of Regional Science 23(3) (1983) 337.
P. Hanjoul and J.P. Thisse, The location of a firm on a network, in:Applied Decision Analysis and Economic Behaviour, ed. A.J. Hughes Hallett (Martinus Nishoff Publishers, 1984) p. 289.
P. Hansen and J.-F. Thisse, Multiplant location for profit maximization, Environment and Planning A 9(1) (1977) 63.
P.T. Harker, A variational inequality approach for the determination of oligopolistic market equilibrium, Mathematical Programming 30 (1984) 105.
P.T. Harker, Alternative models of spatial competition, Operations Research 34(3) (1986) 410.
P.T. Harker and J.S. Pang, Existence of optimal solutions to mathematical programs with equilibrium constraints, Working Paper 87-05-03, Dept. of Decision Sciences, The Wharton School, University of Pennsylvania, 1987.
D. Kinderlehrer and G. Stampacchia,An Introduction to Variational Inequalities and their Applications (Academic Press, 1980).
J.M. Ortega and W.C. Rheinboldt,Iterative Solution of Nonlinear Equations in Several Variables (Academic Press, 1970).
C. Revelle, The maximum capture or sphere of influence location problem: Hotelling revisited on a network, Journal of Regional Science 26(2) (1986) 343.
P.A. Samuelson, Spatial price equilibrium and linear programming, American Economic Review 42 (1952) 283.
H.D. Sherali, A.L. Soyster and F.H. Murphy, Stackelberg-Nash-Cournot equilibria: characterizations and computations, Operations Research 31(2) (1983) 253.
T. Takayama and G.C. Judge,Spatial and Temporal Price and Allocation Models (North-Holland, 1971).
R.L. Tobin and T.L. Friesz, Spatial competition facility location models: definition, formulation and solution approach, Annals of Operations Research: Location Theory and Applications 6(1) (1986) 49.
J.L. Wagner and L.M. Falkson, The optimal nodal location of public facilities with price-sensitive demand, Geographical Analysis 7 (1975) 69.
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Friesz, T.L., Tobin, R.L. & Miller, T. Existence theory for spatially competitive network facility location models. Ann Oper Res 18, 267–276 (1989). https://doi.org/10.1007/BF02097808
Issue Date:
DOI: https://doi.org/10.1007/BF02097808