Eine Plattform für die Wissenschaft: Bauingenieurwesen, Architektur und Urbanistik
Eine Plattform für die Wissenschaft: Bauingenieurwesen, Architektur und Urbanistik
Optimizing subsidies for the location of distribution centers
Abstract The paper introduces a three-level model of location. On the lowest level, customers purchase the good from a firm. On the next higher level, the firm will decide how many distribution centers it will establish and where these centers are to be located. In addition to its location costs, the firm’s location decision will also be guided in part by the subsidy offered by a regional planner. Finally on the highest level, the regional planner will use its own revenue that it derives from the firm’s economic activities to offer a subsidy to the firm. This subsidy is assumed to be based purely on economic, rather than political considerations. In other words, the regional planner’s objective is to maximize its revenue. The paper then formally constructs models for the firm and the regional planner and examines their relations. It turns out that the models can be combined and greatly simplified. Computational tests on a set of published data confirm the solvability of the model. They also reveal the strong decrease of the proportion of unmet demand as economic multipliers and/or prices increase. This also implies an increase in the subsidy that must be paid to the firm, as the regional planner wants to convince it to locate the number of centers it prefers at the sites it wants them to be. Additional tests investigate the effects that result from price and related demand changes in case of elastic demand.
Optimizing subsidies for the location of distribution centers
Abstract The paper introduces a three-level model of location. On the lowest level, customers purchase the good from a firm. On the next higher level, the firm will decide how many distribution centers it will establish and where these centers are to be located. In addition to its location costs, the firm’s location decision will also be guided in part by the subsidy offered by a regional planner. Finally on the highest level, the regional planner will use its own revenue that it derives from the firm’s economic activities to offer a subsidy to the firm. This subsidy is assumed to be based purely on economic, rather than political considerations. In other words, the regional planner’s objective is to maximize its revenue. The paper then formally constructs models for the firm and the regional planner and examines their relations. It turns out that the models can be combined and greatly simplified. Computational tests on a set of published data confirm the solvability of the model. They also reveal the strong decrease of the proportion of unmet demand as economic multipliers and/or prices increase. This also implies an increase in the subsidy that must be paid to the firm, as the regional planner wants to convince it to locate the number of centers it prefers at the sites it wants them to be. Additional tests investigate the effects that result from price and related demand changes in case of elastic demand.
Optimizing subsidies for the location of distribution centers
Bhadury, Joy (Autor:in) / Eiselt, H. A. (Autor:in)
2010
Aufsatz (Zeitschrift)
Elektronische Ressource
Englisch
BKL:
83.64$jRegionalwirtschaft
/
74.12
Stadtgeographie, Siedlungsgeographie
/
38.00$jGeowissenschaften: Allgemeines
/
38.00
Geowissenschaften: Allgemeines
/
83.64
Regionalwirtschaft
/
74.12$jStadtgeographie$jSiedlungsgeographie
RVK:
ELIB39
/
ELIB18
/
ELIB45
Lokalklassifikation FBW:
oek 4450
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