Highlights ► We model location decisions for competitive firms serving a set of markets. ► Supply firms incur firm-specific transportation, congestion, and location costs. ► Each market’s price is determined by Cournot competition. ► Supply levels are characterized using a variational inequality formulation. ► Firms’ equilibrium location decisions and supply quantities are characterized.

    Abstract This paper studies a set of heterogenous competitive firms simultaneously locating facilities at a set of locations to serve a set of markets. Firms incur firm-specific transportation, congestion, and location costs, and market price is linear and decreasing in the amount shipped to the market by all firms. First, firms’ market-supply decisions for given facility locations are characterized using a variational inequality formulation. Then, firms’ location decisions are analyzed. A heuristic method is provided for finding equilibrium locations, and its computational efficiency is compared to a random search method.


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    Title :

    Competitive multi-facility location games with non-identical firms and convex traffic congestion costs


    Contributors:


    Publication date :

    2011-06-05


    Size :

    13 pages




    Type of media :

    Article (Journal)


    Type of material :

    Electronic Resource


    Language :

    English





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