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A chain has to decide the location and design for a single new facility in a region where a set of facilities already exists offering the same type of product. Some of the existing facilities belong to the chain and the others are competitors. Since competition comes from outside the chain, the...
Persistent link: https://www.econbiz.de/10005698790
The location-quality decision of a facility for two competing suppliers in a new market is described by a Huff-like attraction model where the profit that can be reached by each supplier depends on the actions of its competitor. We study the profit maximization problem of the suppliers under...
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