| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 1023756 | Transportation Research Part E: Logistics and Transportation Review | 2012 | 13 Pages |
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.
► 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.
