The Follower Competitive Location Problem with Comparison-Shopping

Vladimir Marianov, H. A. Eiselt, Armin Lüer-Villagra

Resultado de la investigación: Article

Resumen

In competitive settings, firms locate their stores to take advantage of consumers’ behavior to maximize their market share. A common behavior is comparison-shopping: in this behavioral pattern, consumers visit multiple stores that sell non-identical products, which are mutual substitutes, before making their purchase decision. This behavior has never been included in location-prescribing models for competitive firms. Given existing branches of one firm, we address the location problem of a follower firm that locates its own branches. We present insights on the instance used by ReVelle in his maximum capture formulation, provide computational experience with one thousand 100-node instances, and consider a realistic case using a 353-node network of Santiago, Chile. The results are compared in terms of the demand captured by each firm and the locational patterns that result from different consumer behaviors.

Idioma originalEnglish
PublicaciónNetworks and Spatial Economics
DOI
EstadoAccepted/In press - 1 ene 2019

Huella dactilar

Consumer behavior

ASJC Scopus subject areas

  • Software
  • Computer Networks and Communications
  • Artificial Intelligence

Citar esto

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The Follower Competitive Location Problem with Comparison-Shopping. / Marianov, Vladimir; Eiselt, H. A.; Lüer-Villagra, Armin.

En: Networks and Spatial Economics, 01.01.2019.

Resultado de la investigación: Article

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