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Competitive location modeling with a rank proportional allocation

Title
Competitive location modeling with a rank proportional allocation
Authors
Lee G.O'Kelly M.E.
Ewha Authors
이건학
Issue Date
2011
Journal Title
Environment and Planning B: Planning and Design
ISSN
0265-8135JCR Link
Citation
vol. 38, no. 3, pp. 411 - 428
Indexed
SSCI; SCOPUS WOS scopus
Abstract
Competitive location modeling deals with a strategic spatial decision which seeks to identify optimal locations for new facilities among existing competing facilities. The capture of customers by a new facility essentially depends on customer-choice behaviors. In this paper, we introduce a competitive location model incorporating a rank proportional choice rule. Also, we explore how the competitive location model with a ranking system differs from other models with two more-typical choice rules-deterministic and probabilistic choices. To do so, we present a numerical example and an illustrative application in the broadband market context, focusing on customer-capture patterns. Our analytical findings reveal that the different choice rules in modeling significantly influence customer-capture and market-share estimates. In particular, a competitive location model with a rank proportional allocation captures fewer customers than other models with different allocation rules, given a fixed number of few facilities.
DOI
10.1068/b35088
Appears in Collections:
사범대학 > 사회과교육과 > Journal papers
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