A Bilevel Competitive Location and Pricing Model with Nonuniform Split of Demand Full article
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Journal of Applied and Industrial Mathematics
ISSN: 1990-4789 , E-ISSN: 1990-4797 |
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| Output data | Year: 2019, Volume: 13, Pages: 500-510 Pages count : 11 DOI: 10.1134/S1990478919030104 | ||||
| Tags | bilevel problem, Stackelberg game, facility location, pricing, Bertrand model, complexity, polynomial hierarchy | ||||
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Abstract:
Under study is the bilevel competitive facility location and pricing problem which is formulated in terms of the Stackelberg game. The problem involves the two producers: the Leader and the Competitor. They consistently place their facilities and set prices. The choice of prices is based on the Bertrand model of price competition and the possibility of dividing a client’s demand if this will be profitable for both players. In this case, the demand is divided between the players in a given proportion. The complexity is investigated of finding the optimal solution of the problem and its particular cases. It is shown that the problem is ΣP2-hard. However, under certain conditions on the input parameters, the complexity decreases significantly and in some cases the problem becomes polynomially solvable.
Cite:
Kononov A.V.
, Panin A.A.
, Plyasunov A.V.
A Bilevel Competitive Location and Pricing Model with Nonuniform Split of Demand
Journal of Applied and Industrial Mathematics. 2019. V.13. P.500-510. DOI: 10.1134/S1990478919030104 Scopus OpenAlex
A Bilevel Competitive Location and Pricing Model with Nonuniform Split of Demand
Journal of Applied and Industrial Mathematics. 2019. V.13. P.500-510. DOI: 10.1134/S1990478919030104 Scopus OpenAlex
Original:
Кононов А.В.
, Панин А.А.
, Плясунов А.В.
Двухуровневая модель конкурентного размещения и ценообразования с неравномерным распределением спроса
Дискретный анализ и исследование операций. 2019. Т.26. №3. С.27-45. DOI: 10.33048/daio.2019.26.638 OpenAlex
Двухуровневая модель конкурентного размещения и ценообразования с неравномерным распределением спроса
Дискретный анализ и исследование операций. 2019. Т.26. №3. С.27-45. DOI: 10.33048/daio.2019.26.638 OpenAlex
Dates:
| Published print: | Aug 27, 2019 |
Identifiers:
| Scopus: | 2-s2.0-85067653979 |
| OpenAlex: | W2971226931 |