Locating multiple competitive facilities: Spatial interaction models with variable expenditures

Abstract

We develop a new framework for location of competitive facilities by introducing non-constant expenditure functions into spatial interaction location models. This framework allows us to capture two key effects - market expansion and cannibalization - within the same model. We develop algorithmic approaches for finding optimal or near-optimal solutions for several models that arise from choosing a specific form of the expenditure functions. [PUBLICATION ABSTRACT]