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The Existence of Equilibria in the Leader-Follower Hub Location and Pricing Problem

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Operations Research Proceedings 2015

Part of the book series: Operations Research Proceedings ((ORP))

Abstract

We propose a model where two competitors, a Leader and a Follower, are sequentially creating their hub and spoke networks and setting prices. The existence of the unique Stackelberg and Nash pricing equilibria is shown. On the basis of these results we give the conclusion about existence of the profit maximising solution for the Leader.

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References

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Acknowledgements

This research was partially supported by the RFBR grant 15-07-01141.

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Authors and Affiliations

  1. University of Banja Luka, Mladena Stojanovića 2, 78000, Banja Luka, Republika Srpska, Bosnia and Herzegovina

    Dimitrije D. Čvokić

  2. Sobolev Institute of Mathematics, Pr. Akademika Koptyuga 4, 630090, Novosibirsk, Russia

    Yury A. Kochetov & Aleksandr V. Plyasunov

  3. Novosibirsk State University, St. Pirogova 2, 630090, Novosibirsk, Russia

    Yury A. Kochetov & Aleksandr V. Plyasunov

Authors
  1. Dimitrije D. Čvokić
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  2. Yury A. Kochetov
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  3. Aleksandr V. Plyasunov
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Corresponding author

Correspondence to Dimitrije D. Čvokić .

Editor information

Editors and Affiliations

  1. Department of Business Administration, University of Vienna, Vienna, Austria

    Karl Franz Dörner

  2. Decision Sciences and Statistics (IDS) Department, ESSEC Business School of Paris, Cergy Pontoise Cedex, France

    Ivana Ljubic

  3. Department of Statistics and Operations Research, University of Vienna, Vienna, Austria

    Georg Pflug

  4. Operations Research and Control Systems, TU Wien, Vienna, Austria

    Gernot Tragler

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Čvokić, D.D., Kochetov, Y.A., Plyasunov, A.V. (2017). The Existence of Equilibria in the Leader-Follower Hub Location and Pricing Problem. In: Dörner, K., Ljubic, I., Pflug, G., Tragler, G. (eds) Operations Research Proceedings 2015. Operations Research Proceedings. Springer, Cham. https://doi.org/10.1007/978-3-319-42902-1_73

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