In this paper, there are two competitors in a planar market. The first competitor, called,
the leader, opens new facilities. After that, the second competitor, the follower, reacts to the leader’s
action and opens r new facilities. The leader and the follower have got some facilities in advance in
this market. The optimal locations for leader and follower are chosen among predefined candidate
locations. In this paper, it is assumed that the demand is inelastic. Considering the huff model,
customers share their demand among all facilities, probabilistically. The leader’s objective function is
the maximization of its market share after the follower’s new facilities entry. The leader and follower
problems are solved via an exact solution method.
Keywords: Competitive Location, Leader-Follower, Huff-Type, Market Share.
R. Ramezanian, M. Gorji Ashtiani. Sequential Competitive Facility Location Problem in a Discrete Planar Space. International Journal of Applied Operational Research 2011; 1 (2) URL: http://ijorlu.liau.ac.ir/article-1-73-en.html