This work deals with a Huff-like Stackelberg problem, where the leader facility wants to decide its location so that its profit is maximal after the competitor (the follower) also built its facility. It is assumed that the follower makes a rational decision, maximizing their profit. The inelastic demand is aggregated into the vertices of a graph, and facilities can be located along the edges. Though the problem is considered very hard computationally we give a Branch and Bound algorithm that can find the solution in reasonable time on medium sized networks, and thus contributing to the scientific achievement of the field.
Citation
Budapest University of Technology and Economics, 05/2014