A competitive facility location problem on a tree network with stochastic weights

We consider it demand points on a tree network. Two competitive companies plan to construct their own facilities on this network in a certain order. We assume that the weights of demand points at the entry time of the follower, used by the leader in his decision, are stochastic. We also assume that each customer utilizes the nearest facility to him. The objective of each company is to locate its facility so as to maximize the captured buying power after the follower's entry. We analyze the problems and present an efficient solution procedure to find a Stackelberg equilibrium solution. (C) 2002 Elsevier Science B.V. All rights reserved.