Abstract
We propose new models for competitive facility location and pricing as bilevel Boolean linear programming problems. We obtain results that characterize the complexity of the problem where a monopolist’s profit on each of the markets is defined with a monotone nonincreasing function of the servicing cost. For this problem, we also propose two approximate algorithms based on the ideas of alternating heuristics and local search. We give results of a computational experiment that show a possibility for fast computation of approximate solutions.
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Original Russian Text © A.A. Panin, M.G. Pashchenko, A.V. Plyasunov, 2014, published in Avtomatika i Telemekhanika, 2014, No. 4, pp. 153–169.
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Panin, A.A., Pashchenko, M.G. & Plyasunov, A.V. Bilevel competitive facility location and pricing problems. Autom Remote Control 75, 715–727 (2014). https://doi.org/10.1134/S0005117914040110
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DOI: https://doi.org/10.1134/S0005117914040110