TITLE

Location of Completing Facilities in a User-Optimizing Environment with Market Externalities

AUTHOR(S)
Brandeau, Margaret L.; Chiu, Samuel S.
PUB. DATE
May 1994
SOURCE
Transportation Science;May94, Vol. 28 Issue 2, p125
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
In many location models, it is assumed that customers select the facility they will patronize based on the distance to that facility, or perhaps on a function of distances between the customer and the different available facilities. We consider a location problem in which customers select a facility based not only on travel time or distance to the facility, but also on negative externalities associated with the market share of the facility. A customer from any particular location frequents the facility that minimizes his travel time to that facility plus an externality cost that depends on the aggregated actions of all customers in the system. We consider the case of two competing facilities, each of which wishes to locate to maximize its market share. We specialize our analysis to the case of a tree network. We characterize the optimal facility locations, and develop an O(n²) algorithm for finding them.
ACCESSION #
4453873

 

Related Articles

  • An Analysis of Competitive Market Behavior. Houston, Franklin S.; Weiss, Doyle L. // Journal of Marketing Research (JMR);May74, Vol. 11 Issue 2, p151 

    This article reports the findings of an empirical investigation into the movement of competitive market share. Palda's cumulative advertising model is adapted to include a price variable, and the analysis is extended to a multibrand market. The statistical methodology employed in the...

  • Consumer Acceptability of Brand Extensions: The Role of Brand Reputation and Perceived Similarity. Selvanayagam, J. Evangeline; Ragel, V. R. // IUP Journal of Brand Management;Sep2015, Vol. 12 Issue 3, p18 

    This study empirically examines the role of independent variables in deciding Consumer Acceptability of Brand Extension (CAOBE) considering the 'Kist' brand in Sri Lanka. The acceptability of brand extension has been tested with regard to 'perceived similarity' and 'brand reputation'. The data...

  • Elasticity of Product Bias. SCHOOLER, ROBERT D.; WILDT, ALBERT R. // Journal of Marketing Research (JMR);Feb1968, Vol. 5 Issue 1, p78 

    This article establishes the concept and measure of the elasticity of product bias. It demonstrates that, for most consumers, the effect of product bias on the selection decision between similar, alternative domestic and foreign goods can be offset by manipulation of the price differential.

  • Context-dependent Preferences. Tversky, Amos; Simonson, Itamar // Management Science;Oct93, Vol. 39 Issue 10, p1179 

    The standard theory of choice--based on value maximization--associates with each option a real value such that, given an offered set, the decision maker chooses the option with the highest value. Despite its simplicity and intuitive appeal, there is a growing body of data that is inconsistent...

  • Predicting Choice Shares Under Conditions of Brand Interdependence. Kamakura, Wagner A.; Srivastava, Rajendra K. // Journal of Marketing Research (JMR);Nov84, Vol. 21 Issue 4, p420 

    The authors discuss some shortcomings of probabilistic choice models which do not capture product interdependencies. When substitutional relationships are present in the marketplace, these models may lead to biased estimates for choice/market shares. A probabilistic choice model which accounts...

  • MARKET SHARE MODELS AS APPROXIMATORS OF AGGREGATED HETEROGENEOUS BRAND CHOICE BEHAVIOR. Givon, Moshe; Horsky, Dan // Management Science;Sep78, Vol. 24 Issue 13, p1404 

    The commonly used market share models are all based on the implicit assumption of a homogeneous population. However, studies of individual brand choice behavior tend to reject this basic premise. In this paper we attempt to explain why market share models perform well in spite of this underlying...

  • The Influence of Driving Time upon Shopping Center Preference. Brunner, James A.; Mason, John L. // Journal of Marketing;Apr1968, Vol. 32 Issue 2, p57 

    Perhaps the most surprising, thing about our knowledge of planned shopping centers is the gap of quantitative information available on the subject. The literature abounds with judgments, insights, and discussions on the significance of population, household income and similar variables; but...

  • Logically Consistent Market Share Models. Naert, Philippe A.; Bultez, Alain // Journal of Marketing Research (JMR);Aug1973, Vol. 10 Issue 3, p334 

    A logically consistent market share model should predict market shares that are between zero and one, and sum to one. Few authors have worried about this type of problem in empirical studies, mainly because of the usual interest in a particular brand. This article will address the problems...

  • Niching Versus Change-of-Pace Brands: Using Purchase Frequencies and Penetration Rates to Infer Brand Positionings . Kahn, Barbara E.; Kalwani, Manohar U.; Morrison, Donald G. // Journal of Marketing Research (JMR);Nov88, Vol. 25 Issue 4, p384 

    The authors examine deviations from Ehrenberg's ‘wi (1 - bi) equal to a constant’ law to infer the positioning of low share brands as niche versus change-of-pace brands. Results from empirical analyses using NPD panel data for four product classes are reported.

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics