HUB NETWORK DESIGN MODEL IN A COMPETITIVE ENVIRONMENT WITH FLOW THRESHOLD

摘要: We consider a hub network design model based on the Stackelberg location model, where two firms compete with each other to maximize their own profit. The firm as leader first locates p hubs and decides which OD pairs should be in services condition that follower q its strategies similar way after that. To avoid possibility of unprofitable services, we incorporate flow threshold constraints into model. formulate leader's problem bilevel programming follower's lower level problem. solve complete enumeration method greedy heuristic. main objective is make it clear how structure can affected by competitor's strategies.