Solving a Location Problem of a Stackelberg Firm Competing with Cournot-Nash Firms
Document Type
Article
Publication Date
3-2014
Keywords
location analysis, Stackelberg-Cournot-Nash equilibrium, game theory, variational inequality, simulated annealing
Digital Object Identifier (DOI)
https://doi.org/10.1007/s11067-013-9217-3
Abstract
We study a discrete facility location problem on a network, where the locating firm acts as the leader and other competitors as the followers in a Stackelberg-Cournot-Nash game. To maximize expected profits the locating firm must solve a mixed-integer problem with equilibrium constraints. Finding an optimal solution is hard for large problems, and full-enumeration approaches have been proposed in the literature for similar problem instances. We present a heuristic solution procedure based on simulated annealing. Computational results are reported.
Was this content written or created while at USF?
No
Citation / Publisher Attribution
Networks and Spatial Economics, v. 14, issue 1, p. 117-132
Scholar Commons Citation
Berglund, Paul G. and Kwon, Changhyun, "Solving a Location Problem of a Stackelberg Firm Competing with Cournot-Nash Firms" (2014). Industrial and Management Systems Engineering Faculty Publications. 33.
https://digitalcommons.usf.edu/egs_facpub/33
