Paper #359

Título:

Surviving in a competitive spatial market: The threshold capture model

Autores:

Daniel Serra, Charles Revelle y Ken Rosing

Fecha:

Febrero 1999

Resumen:

Most facility location decision models ignore the fact that for a facility to survive it needs a minimum demand level to cover costs. In this paper we present a decision model for a firm that wishes to enter a spatial market where there are several competitors already located. This market is such that for each outlet there is a demand threshold level that has to be achieved in order to survive. The firm wishes to know where to locate its outlets so as to maximize its market share taking into account the threshold level. It may happen that due to this new entrance, some competitors will not be able to meet the threshold and therefore will disappear. A formulation is presented together with a heuristic solution method and computational experience.

Palabras clave:

Discrete facility location, threshold, competitive location

Códigos JEL:

C61, R12, R53

Área de investigación:

Gestión de la Producción y de las Operaciones

Publicado en:

Journal of Regional Science, 39, 4, (1999), pp. 637-652

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