Stability of utility functions and apportionment rules in location models

H. A. Eiselt ^[1] ; Vladimir Marianov ^[2]
1. [1] University of New Brunswick
  
  University of New Brunswick
  
  Canadá
2. [2] Pontifcia Universidad Católica de Chile
Localización: Top, ISSN-e 1863-8279, ISSN 1134-5764, Vol. 28, Nº. Extra 3, 2020, págs. 772-792
Idioma: inglés
DOI: 10.1007/s11750-020-00569-8
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Resumen
- This paper investigates how demand is apportioned to facilities by customers, given that they apply one of a number of utility functions according to which they satisfy their demand at the facilities. After delineating the basic decision-making process, a number of reasonable assumptions are formulated regarding the behavior of the utility functions after a scaling of their different parameters. The individual apportionment rules are examined so as to whether or not they satisfy these assumptions. The results are of importance for decision-makers that must use these utility functions when facing locational decisions.