| People | Locations | Statistics |
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| Mouftah, Hussein T. |
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| Dugay, Fabrice |
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| Rettenmeier, Max |
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| Tomasch, Ernst | Graz |
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| Cornaggia, Greta |
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| Palacios-Navarro, Guillermo |
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| Uspenskyi, Borys V. |
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| Khan, Baseem |
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| Fediai, Natalia |
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| Derakhshan, Shadi |
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| Somers, Bart | Eindhoven |
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| Anvari, B. |
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| Kraushaar, Sabine | Vienna |
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| Kehlbacher, Ariane |
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| Das, Raj |
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| Werbińska-Wojciechowska, Sylwia |
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| Brillinger, Markus |
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| Eskandari, Aref |
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| Gulliver, J. |
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| Loft, Shayne |
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| Kud, Bartosz |
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| Matijošius, Jonas | Vilnius |
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| Piontek, Dennis |
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| Kene, Raymond O. |
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| Barbosa, Juliana |
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Pelegrín, Blas
in Cooperation with on an Cooperation-Score of 37%
Topics
Publications (7/7 displayed)
- 2023On the Existence and Computation of Nash Equilibrium in Network Competitive Location Under Delivered Pricing and Price Sensitive Demandcitations
- 2018Computation of Multi-facility Location Nash Equilibria on a Network Under Quantity Competitioncitations
- 2016Profit maximization and reduction of the cannibalization effect in chain expansioncitations
- 2012Isodistant points in competitive network facility locationcitations
- 2011Location strategy for a firm under competitive delivered pricescitations
- 2008A practical algorithm for decomposing polygonal domains into convex polygons by diagonalscitations
- 2007Planar Location and Design of a New Facility with Inner and Outer Competition: An Interval Lexicographical-like Solution Procedurecitations
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document
Profit maximization and reduction of the cannibalization effect in chain expansion
Abstract
We consider the facility location problem for an expanding chain which competes with other chains offering the same goods or service in a geographical area. Customers are supposed to select the facility with maximum utility to be served and facilities in the expanding chain may have different owners. We first use the weighted method to develop an integer linear programming model to obtain Pareto optimal locations related to the inner competition between the owners of the old facilities and the owners of the new facilities. This model is applied to maximizing the profit of the expanding chain taking into account the loss in market share of its old facilities caused by the entering of new facilities (cannibalization effect). A study with data of Spanish municipalities shows that the cannibalization effect can be significantly reduced by sacrificing a small portion of profit.
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