The follower location problem with attraction thresholds

Abstract

In this research note, the follower location problem where the customers' choice is based on an attraction function is analysed. The attraction function depends on both the distance between customers and facilities, and the characteristics (quality) of the facilities. Customers at each node impose a minimum level of attraction in order to patronise a facility and then they share their buying power among the facilities that pass this threshold. The amount of demand captured by each of these facilities is proportional to the attraction perceived by the customers. In this case, a discretisation of this network problem is proved.