An exact procedure and LP formulations for the leader—follower location problem

  1. Clara M. Campos Rodríguez 1
  2. Dolores R. Santos Peñate 2
  3. José A. Moreno Pérez 1
  1. 1 Universidad de La Laguna, España
  2. 2 Universidad de Las Palmas de G.C., España
Revista:
Top

ISSN: 1863-8279 1134-5764

Ano de publicación: 2010

Volume: 18

Número: 1

Páxinas: 97-121

Tipo: Artigo

Outras publicacións en: Top

Resumo

The leader—follower location problem consists of determining an optimal strategy for two competing firms which make decisions sequentially. The leader optimisation problem is to minimise the maximum market share of the follower. The objective of the follower problem is to maximise its market share. We describe linear programming formulations for both problems and analyse the use of these formulations to solve the problems. We also propose an exact procedure based on an elimination process in a candidate list.

Información de financiamento

Acknowledgements Research partially supported by the Gobierno de España and FEDER funds (grant TIN2005-08404-C04-03, MTM2005-09362-C03-03 and ECO2008-05589).