Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › Research › peer-review
A new model of competitive location and pricing with the uniform split of the demand. / Kononov, Aleksandr V.; Panin, Artem A.; Plyasunov, Aleksandr V.
Optimization Problems and Their Applications - 7th International Conference, OPTA 2018, Revised Selected Papers. Springer-Verlag GmbH and Co. KG, 2018. p. 16-28 (Communications in Computer and Information Science; Vol. 871).Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › Research › peer-review
}
TY - GEN
T1 - A new model of competitive location and pricing with the uniform split of the demand
AU - Kononov, Aleksandr V.
AU - Panin, Artem A.
AU - Plyasunov, Aleksandr V.
PY - 2018/1/1
Y1 - 2018/1/1
N2 - In this paper, a new optimization model of competitive facility location and pricing is introduced. This model is an extension of the well-known (r|p)-centroid problem. In the model, two companies compete for the client’s demand. Each client has a finite budget and a finite demand. First, a company-leader determines a location of p facilities. Taking into account the location of leader’s facilities, the company-follower determines a location of its own r facilities. After that, each company assigns a price for each client. When buying a product, the client pays the price of the product and its transportation. A client buys everything from a company with lower total costs if their total costs do not exceed the budget of the client. If the cost of buying a product from both companies is the same, the demand of clients is distributed equally among them. The goal is to determine a location of leader’s facilities and set the prices in which the total income of the leader is maximal. Results about the computational complexity of the model are presented. Several special cases are considered. These cases can be divided into three categories: (1) polynomially solvable problems; (2) NP-hard problems; (3) problems related to the second level of the polynomial hierarchy. Finally, the complexity of the maxmin-2-Sat problem is discussed.
AB - In this paper, a new optimization model of competitive facility location and pricing is introduced. This model is an extension of the well-known (r|p)-centroid problem. In the model, two companies compete for the client’s demand. Each client has a finite budget and a finite demand. First, a company-leader determines a location of p facilities. Taking into account the location of leader’s facilities, the company-follower determines a location of its own r facilities. After that, each company assigns a price for each client. When buying a product, the client pays the price of the product and its transportation. A client buys everything from a company with lower total costs if their total costs do not exceed the budget of the client. If the cost of buying a product from both companies is the same, the demand of clients is distributed equally among them. The goal is to determine a location of leader’s facilities and set the prices in which the total income of the leader is maximal. Results about the computational complexity of the model are presented. Several special cases are considered. These cases can be divided into three categories: (1) polynomially solvable problems; (2) NP-hard problems; (3) problems related to the second level of the polynomial hierarchy. Finally, the complexity of the maxmin-2-Sat problem is discussed.
KW - Competitive location
KW - Computational complexity
KW - Pricing
KW - Split demand
UR - http://www.scopus.com/inward/record.url?scp=85049674691&partnerID=8YFLogxK
U2 - 10.1007/978-3-319-93800-4_2
DO - 10.1007/978-3-319-93800-4_2
M3 - Conference contribution
AN - SCOPUS:85049674691
SN - 9783319937991
T3 - Communications in Computer and Information Science
SP - 16
EP - 28
BT - Optimization Problems and Their Applications - 7th International Conference, OPTA 2018, Revised Selected Papers
PB - Springer-Verlag GmbH and Co. KG
T2 - 7th International Conference on Optimization Problems and Their Applications, OPTA 2018
Y2 - 8 June 2018 through 14 June 2018
ER -
ID: 14464412