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The competitive hub location under the price war. / Čvokić, Dimitrije D.; Kochetov, Yury A.; Plyasunov, Aleksandr V. et al.
Mathematical Optimization Theory and Operations Research - 18th International Conference, MOTOR 2019, Proceedings. ed. / Michael Khachay; Panos Pardalos; Yury Kochetov. Springer-Verlag GmbH and Co. KG, 2019. p. 133-146 (Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics); Vol. 11548 LNCS).
Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › Research › peer-review
Harvard
Čvokić, DD
, Kochetov, YA, Plyasunov, AV & Savić, A 2019,
The competitive hub location under the price war. in M Khachay, P Pardalos & Y Kochetov (eds),
Mathematical Optimization Theory and Operations Research - 18th International Conference, MOTOR 2019, Proceedings. Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics), vol. 11548 LNCS, Springer-Verlag GmbH and Co. KG, pp. 133-146, 18th International Conference on Mathematical Optimization Theory and Operations Research, MOTOR 2019, Ekaterinburg, Russian Federation,
08.07.2019.
https://doi.org/10.1007/978-3-030-22629-9_10APA
Čvokić, D. D.
, Kochetov, Y. A., Plyasunov, A. V., & Savić, A. (2019).
The competitive hub location under the price war. In M. Khachay, P. Pardalos, & Y. Kochetov (Eds.),
Mathematical Optimization Theory and Operations Research - 18th International Conference, MOTOR 2019, Proceedings (pp. 133-146). (Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics); Vol. 11548 LNCS). Springer-Verlag GmbH and Co. KG.
https://doi.org/10.1007/978-3-030-22629-9_10Vancouver
Čvokić DD
, Kochetov YA, Plyasunov AV, Savić A.
The competitive hub location under the price war. In Khachay M, Pardalos P, Kochetov Y, editors, Mathematical Optimization Theory and Operations Research - 18th International Conference, MOTOR 2019, Proceedings. Springer-Verlag GmbH and Co. KG. 2019. p. 133-146. (Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)). doi: 10.1007/978-3-030-22629-9_10
Author
Čvokić, Dimitrije D.
; Kochetov, Yury A. ; Plyasunov, Aleksandr V. et al. /
The competitive hub location under the price war. Mathematical Optimization Theory and Operations Research - 18th International Conference, MOTOR 2019, Proceedings. editor / Michael Khachay ; Panos Pardalos ; Yury Kochetov. Springer-Verlag GmbH and Co. KG, 2019. pp. 133-146 (Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)).
BibTeX
@inproceedings{345b815180ea4b4390941b4272eb9312,
title = "The competitive hub location under the price war",
abstract = "Two transportation companies want to enter the market and they are aware of each other. The objective for the both of competitors is to maximize their respective profits by finding the best hub and spoke networks and price structures. One company wants to establish r hubs and the other wants to establish p hubs. It is assumed that the customers choose the route by price and the logistic regression based model is used to estimate how the demand is shared. After setting their networks, the competing companies engage in the price war. We propose a new model for finding a Stackelberg strategy that includes a price game, as bi-level nonlinear mixed-integer program, called the (r|p) hub-centroid problem under the price war. It is shown that there is a unique finite Bertrand-Nash price equilibrium. On the basis of this result, we show the solution existence, propose a new equations for the best response pricing, and address the computational complexity of the problem. Finally, we discuss some possible future research directions that concern the solution approach and some other competitive scenarios that involve pricing.",
keywords = "Bertrand price equilibrium, Complexity, Hub location, Logit model, Stackelberg strategy",
author = "{\v C}voki{\'c}, {Dimitrije D.} and Kochetov, {Yury A.} and Plyasunov, {Aleksandr V.} and Aleksandar Savi{\'c}",
year = "2019",
month = jan,
day = "1",
doi = "10.1007/978-3-030-22629-9_10",
language = "English",
isbn = "9783030226282",
series = "Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)",
publisher = "Springer-Verlag GmbH and Co. KG",
pages = "133--146",
editor = "Michael Khachay and Panos Pardalos and Yury Kochetov",
booktitle = "Mathematical Optimization Theory and Operations Research - 18th International Conference, MOTOR 2019, Proceedings",
address = "Germany",
note = "18th International Conference on Mathematical Optimization Theory and Operations Research, MOTOR 2019 ; Conference date: 08-07-2019 Through 12-07-2019",
}
RIS
TY - GEN
T1 - The competitive hub location under the price war
AU - Čvokić, Dimitrije D.
AU - Kochetov, Yury A.
AU - Plyasunov, Aleksandr V.
AU - Savić, Aleksandar
PY - 2019/1/1
Y1 - 2019/1/1
N2 - Two transportation companies want to enter the market and they are aware of each other. The objective for the both of competitors is to maximize their respective profits by finding the best hub and spoke networks and price structures. One company wants to establish r hubs and the other wants to establish p hubs. It is assumed that the customers choose the route by price and the logistic regression based model is used to estimate how the demand is shared. After setting their networks, the competing companies engage in the price war. We propose a new model for finding a Stackelberg strategy that includes a price game, as bi-level nonlinear mixed-integer program, called the (r|p) hub-centroid problem under the price war. It is shown that there is a unique finite Bertrand-Nash price equilibrium. On the basis of this result, we show the solution existence, propose a new equations for the best response pricing, and address the computational complexity of the problem. Finally, we discuss some possible future research directions that concern the solution approach and some other competitive scenarios that involve pricing.
AB - Two transportation companies want to enter the market and they are aware of each other. The objective for the both of competitors is to maximize their respective profits by finding the best hub and spoke networks and price structures. One company wants to establish r hubs and the other wants to establish p hubs. It is assumed that the customers choose the route by price and the logistic regression based model is used to estimate how the demand is shared. After setting their networks, the competing companies engage in the price war. We propose a new model for finding a Stackelberg strategy that includes a price game, as bi-level nonlinear mixed-integer program, called the (r|p) hub-centroid problem under the price war. It is shown that there is a unique finite Bertrand-Nash price equilibrium. On the basis of this result, we show the solution existence, propose a new equations for the best response pricing, and address the computational complexity of the problem. Finally, we discuss some possible future research directions that concern the solution approach and some other competitive scenarios that involve pricing.
KW - Bertrand price equilibrium
KW - Complexity
KW - Hub location
KW - Logit model
KW - Stackelberg strategy
UR - http://www.scopus.com/inward/record.url?scp=85067692841&partnerID=8YFLogxK
U2 - 10.1007/978-3-030-22629-9_10
DO - 10.1007/978-3-030-22629-9_10
M3 - Conference contribution
AN - SCOPUS:85067692841
SN - 9783030226282
T3 - Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)
SP - 133
EP - 146
BT - Mathematical Optimization Theory and Operations Research - 18th International Conference, MOTOR 2019, Proceedings
A2 - Khachay, Michael
A2 - Pardalos, Panos
A2 - Kochetov, Yury
PB - Springer-Verlag GmbH and Co. KG
T2 - 18th International Conference on Mathematical Optimization Theory and Operations Research, MOTOR 2019
Y2 - 8 July 2019 through 12 July 2019
ER -
