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A Stackelberg hub arc location model for a competitive environment

DSpace at IIT Bombay

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Title A Stackelberg hub arc location model for a competitive environment
 
Creator SASAKI, M
CAMPBELL, JF
KRISHNAMOORTHY, M
ERNST, AT
 
Subject Hub location
Competitive location
Stackelberg competition
STATES AIRLINE INDUSTRY
NETWORK DESIGN
SPOKE NETWORK
MARKET POWER
PART II
CHOICE
TRANSPORTATION
OPTIMIZATION
ALLOCATION
FACILITIES
 
Description In this paper, we consider the design of large-scale multiple allocation hub-and-spoke transportation networks in a competitive environment. We adopt a generic hub arc location model that locates arcs with discounted transport costs connecting pairs of hub facilities. Two firms compete for customers in a Stackelberg framework where the leader firm locates hub arcs to maximize its revenue, given that the follower firm will subsequently locate its own hub arcs to maximize its own revenue. We present an optimal solution algorithm that allocates traffic between the two firms based on the relative utility of travel via the competing hub networks. Results for each competing firm with up to three hub arcs show the important role of competition in designing hub-based transportation systems. (C) 2014 Elsevier Ltd. All rights reserved.
 
Publisher PERGAMON-ELSEVIER SCIENCE LTD
 
Date 2014-12-28T17:25:20Z
2014-12-28T17:25:20Z
2014
 
Type Article
 
Identifier COMPUTERS & OPERATIONS RESEARCH, 4727-41
0305-0548
1873-765X
http://dx.doi.org/10.1016/j.cor.2014.01.009
http://dspace.library.iitb.ac.in/jspui/handle/100/16983
 
Language English