This book presents an up-to-date review of modeling and optimization
approaches for location problems along with a new bi-level programming
methodology which captures the effect of competition of both producers
and customers on facility location decisions. While many optimization
approaches simplify location problems by assuming decision making in
isolation, this monograph focuses on models which take into account the
competitive environment in which such decisions are made. New insights
in modeling, algorithmic and theoretical possibilities are opened by
this approach and new applications are possible. Competition on equal
term plus competition between market leader and followers are considered
in this study, consequently bi-level optimization methodology is
emphasized and further developed. This book provides insights regarding
modeling complexity and algorithmic approaches to discrete competitive
location problems. In traditional location modeling, assignment of
customer demands to supply sources are made for which the associated
costs target the firm and not the customers, though in many real world
situations the cost is incurred by the customers. Moreover, there may be
customer competition for the provided services. Thus, a new
methodological framework is needed in order to encompass such
considerations into the modeling and solution process. This book offers
initial directions for further research and development along these
lines. Aimed toward graduate students and researchers in the field of
mathematics, computer science, operational research and game theory,
this title provides necessary information on which further research
contributions can be based.
