A review of competitive facility location in the plane
Review
First online: 04.06.2014
DOI: 10.1007/s12159-014-0114-z
Cite this article as: Drezner, T. Logist. Res. (2014) 7: 114. doi:10.1007/s12159-014-0114-z
In this paper, we review competitive location models. Retail facilities operate in a competitive environment with an objective of profit and market share maximization. These facilities are different from each other in their overall attractiveness to consumers. The basic problem is the optimal location of one or more new facilities in a market where competition already exists or will exist in the future. Extensions to the models include an analysis of the optimal allocation of a budget among new facilities and their best locations, modeling location under conditions of uncertainty and future competition, incorporating the concept of a threshold in competitive location, modeling lost demand, and minimizing cannibalization.
Keywords
Facility location Competitive Gravity model Huff Location-allocation