Competitive Location Models and Consumer Spatial Behaviour

3. Competitive Location Models

4. Competitive Location Models
& Consumer Spatial Behaviour

5. Competitive Location Models
& Consumer Spatial Behaviour
Optimisation Models and an Agent-Based Approach

12. Motivation & Challenges

13. Motivation & Challenges
uncertainty

14. Motivation & Challenges
uncertainty
fish where
the fish are

15. Motivation & Challenges
uncertainty
fish where
the fish are
complex consumer
market

16. Motivation & Challenges
uncertainty
fish where
the fish are
complex consumer
market
extending location
decision

17. Motivation & Challenges
uncertainty foresight models
fish where
the fish are
complex consumer
market
extending location
decision

18. Motivation & Challenges
uncertainty foresight models
fish where trends consumer
the fish are spatial behaviour
complex consumer
market
extending location
decision

19. Motivation & Challenges
uncertainty foresight models
fish where trends consumer
the fish are spatial behaviour
complex consumer
agent-based approach
market
extending location
decision

20. Motivation & Challenges
uncertainty foresight models
fish where trends consumer
the fish are spatial behaviour
complex consumer
agent-based approach
market
extending location
include price
decision

21. Ch 1: Introduction
optimization models
Ch 2: Competitive location Ch 3: Consumer
models with foresight spatial behavior
location
agent-based approach
Ch 4: An ABM approach for
location problems
location & price
Ch 5: Competitive location
model with pricing
Ch 6: An ABM approach for
location problems with
pricing
Ch 7: Conclusions

22. Ch 1: Introduction
optimization models
Ch 2: Competitive location Ch 3: Consumer
models with foresight spatial behavior
location
agent-based approach
Ch 4: An ABM approach for
location problems
location & price
Ch 5: Competitive location
model with pricing
Ch 6: An ABM approach for
location problems with
pricing
Ch 7: Conclusions

23. Ch 1: Introduction
optimization models
Ch 2: Competitive location Ch 3: Consumer
models with foresight spatial behavior
location
agent-based approach
Ch 4: An ABM approach for
location problems
location & price
Ch 5: Competitive location
model with pricing
Ch 6: An ABM approach for
location problems with
pricing
Ch 7: Conclusions

24. Maximal covering model

25. Maxmin model

26. Minregret model

27. von Stackelberg model

28. Computational results
! feasibility
! spatial characteristics
! number of facilities/budget

29. Pre-processing
! variable dropping
! variable substitution
! demand aggregation

32. Computational results
! optimality
! reduction of the model size
! speed up the solution times

33. Motivation & Challenges
uncertainty foresight models
fish where trends consumer
the fish are spatial behaviour
complex consumer
agent-based approach
market
extending location
include price
decision

34. Ch 1: Introduction
optimization models
Ch 2: Competitive location Ch 3: Consumer
models with foresight spatial behavior
location
agent-based approach
Ch 4: An ABM approach for
location problems
location & price
Ch 5: Competitive location
model with pricing
Ch 6: An ABM approach for
location problems with
pricing
Ch 7: Conclusions

36. Consumer spatial behaviour
! traditional approaches
! new trends

37. 3 dimensions
! level of aggregation
! level of chance variation
! level of dynamism

38. 3 dimensions
! level of aggregation
ut ion
! level of chance variation
evol
! level of dynamism

39. Recent challenges
! Bounded rationality
" cognitive map
! Complex environment
" heterogeneity of consumers
" non-homogeneity of goods
" dynamism

42. Recent challenges
! Bounded rationality
" cognitive map
! Complex environment
" heterogeneity of consumers
" non-homogeneity of goods
" dynamism

44. Recent challenges
! Bounded rationality
" cognitive map
! Complex environment
" heterogeneity of consumers
" non-homogeneity of goods
" dynamism

47. Recent challenges
! Bounded rationality
" cognitive map
! Complex environment
" heterogeneity of consumers
" non-homogeneity of goods
" dynamism

49. Case study: Ghent

50. Motivation & Challenges
uncertainty foresight models
fish where trends consumer
the fish are spatial behaviour
complex consumer
agent-based approach
market
extending location
include price
decision

51. Ch 1: Introduction
optimization models
Ch 2: Competitive location Ch 3: Consumer
models with foresight spatial behavior
location
agent-based approach
Ch 4: An ABM approach for
location problems
location & price
Ch 5: Competitive location
model with pricing
Ch 6: An ABM approach for
location problems with
pricing
Ch 7: Conclusions

52. Goal
• empirical understanding
• normative understanding
! qualitative insight
• methodological advancement

53. virtual world
“An agent-based model is a comprising
heterogeneous agents
distributed
who interact over time.
spatial
In a agent-based model the agents are situated in a
spatial environment and are typically
move
assumed to be able to in various ways across this
environment.”
- Dibble, 2006 -

54. agents refer to ...
“ data behavioural methods
bundled &
entity
representing an constituting part of a
computationally world” constructed
- Tesfatsion, 2006 -

55. Conceptual model

56. Incremental development

59. Simulation
! decision making simulation
! solution quality assessing simulation

61. Motivation & Challenges
uncertainty foresight models
fish where trends consumer
the fish are spatial behaviour
complex consumer
agent-based approach
market
extending location
include price
decision

62. Ch 1: Introduction
optimization models
Ch 2: Competitive location Ch 3: Consumer
models with foresight spatial behavior
location
agent-based approach
Ch 4: An ABM approach for
location problems
location & price
Ch 5: Competitive location
model with pricing
Ch 6: An ABM approach for
location problems with
pricing
Ch 7: Conclusions

63. Revenue maximisation model

64. Computational results
! optimality
! feasibility

65. Ch 1: Introduction
optimization models
Ch 2: Competitive location Ch 3: Consumer
models with foresight spatial behavior
location
agent-based approach
Ch 4: An ABM approach for
location problems
location & price
Ch 5: Competitive location
model with pricing
Ch 6: An ABM approach for
location problems with
pricing
Ch 7: Conclusions

67. Motivation & Challenges
uncertainty foresight models
fish where trends consumer
the fish are spatial behaviour
complex consumer
agent-based approach
market
extending location
include price
decision

68. In summary
uncertainty foresight models
fish where trends consumer
the fish are spatial behaviour
complex consumer
agent-based approach
market
extending location
include price
decision

71. Thank you!
Illustrations
Shutterstock.com except Prada Marfa by M. Astor, Mental
Map by M. Dance, Delhaize by Delhaize, Delhaize City by me
& Bazinga by Alaska Button Company