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- W2061344771 abstract "We formulate and solve a new hub location and pricing problem, describing a situation in which an existing transportation company operates a hub and spoke network, and a new company wants to enter into the same market, using an incomplete hub and spoke network. The entrant maximizes its profit by choosing the best hub locations and network topology and applying optimal pricing, considering that the existing company applies mill pricing. Customers’ behavior is modeled using a logit discrete choice model. We solve instances derived from the CAB dataset using a genetic algorithm and a closed expression for the optimal pricing. Our model confirms that, in competitive settings, seeking the largest market share is dominated by profit maximization. We also describe some conditions under which it is not convenient for the entrant to enter the market." @default.
- W2061344771 created "2016-06-24" @default.
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- W2061344771 date "2013-12-01" @default.
- W2061344771 modified "2023-10-14" @default.
- W2061344771 title "A competitive hub location and pricing problem" @default.
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- W2061344771 doi "https://doi.org/10.1016/j.ejor.2013.06.006" @default.
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