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A Non-metric Bilevel Location Problem

Claudio Arbib(claudio.arbib***at***univaq.it)
Matteo Tonelli(matteo.tonelli***at***gssi.infn.it)

Abstract: We address a bilevel location problem where a leader first decides which facilities to open and their access prices; then, customers make individual decisions minimizing individual costs. In this note we prove that, when access costs do not fulfill metric properties, the problem is NP-hard even if facilities can be opened at no fixed cost.

Keywords: location problem, bilevel programming, Stackelberg game

Category 1: Applications -- OR and Management Sciences

Category 2: Applications -- Science and Engineering (Facility Planning and Design )

Category 3: Applications -- OR and Management Sciences (Finance and Economics )

Citation: UniversitÓ degli Studi dell'Aquila Dipartimento di Ingegneria/Scienze dell'Informazione e Matematica, via Vetoio, 67010 Coppito, L'Aquila, Italy April 2016

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Entry Submitted: 04/08/2016
Entry Accepted: 04/08/2016
Entry Last Modified: 04/08/2016

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