Paper #219

Title:

Competitive location and pricing on networks

Authors:

Daniel Serra and Charles Revelle

Date:

June 1997

Abstract:

In this paper we consider a location and pricing model for a retail firm that wants to enter a spatial market where a competitor firm is already operating as a monopoly with several outlets. The entering firms seeks to determine the optimal uniform mill price and its servers' locations that maximizes profits given the reaction in price of the competitor firm to its entrance. A tabu search procedure is presented to solve the model together with computational experience.

Keywords:

Competitive location, discrete network location, spatial pricing

JEL codes:

C61, R32, L81, R12

Area of Research:

Microeconomics

Published in:

Geographical Analysis, 31, 2, (1999)

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