Article Abstract:
In this note we propose a new model for the airline hub selection problem. Passengers use a hub on the way to their destination. We apply the objective of minimizing the total miles traveled by passengers. This formulation can be used as the basis for other objectives also.
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Article Abstract:
The market share captured by competing facilities is calculated using a new approach. Consumers are assumed to patronize a facility according to a utility function and choose the facility with the highest utility value. Ratings of the utility components by consumers are found to be stochastic by some random distribution. This means that the purchasing power of customers at the same location is spread out among the many facilities. A model combines certain features of gravity-based models with those of spatial choice models, resulting in naturally discrete Hotelling-based models.
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Article Abstract:
A logit function of the distance can estimate the functional relationship between the random utility model and the logit model in competitive facility location, a proof that a relationship between the functional relationship exists. It also provides a theoretical proof for the use of the logit function of the distance in evaluating market share captured by competing facilities. The random utility model based on spatial choice behavior models establishes a connection between spatial choice models and the logit function of the distance approach.
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