Locational planning on scenario-based networks

Photis, Yorgos N. (1992): Locational planning on scenario-based networks. Published in: Proceedings of the IV World Congress of the R.S.A.I. , Vol. 1, No. 52 (1992): pp. 87-118.

Abstract

More and more frequently locational planners are faced with the problem of decision making under the condition of uncertainty. In this paper a methodological framework is presented for solving Location - Allocation problems, through the application of the multinomial logit model to data derived from the modification of the characteristics of a given network. The study differs from earlier work in two aspects: First, a utility junction, as a measure of relative attractiveness, is implemented, in order to assign realization probabilities to each alternative scenario. Second, the decisions are made through the utilization of two system - performance criteria. The expected loss and the minimax loss criterion of the optimal solution of each future scenario generated by the decision maker during the problem - solving procedure of th e approach.

• Item Type: MPRA Paper
• Language: English
• Keywords: Locational planning, scenario-based, utility function, expected loss
• Subjects: R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R5 - Regional Government Analysis > R53 - Public Facility Location Analysis ; Public Investment and Capital Stock; D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D81 - Criteria for Decision-Making under Risk and Uncertainty; F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F47 - Forecasting and Simulation: Models and Applications

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