Open Access Open Access  Restricted Access Subscription or Fee Access

Local Search Approach for the Competitive Facility Location Problem in Mobile Networks

Ivan Davydov, Yury Kochetov, Stephan Dempe


We present a new leader-follower facility location game for 5G high-speed networks. Two mobile operators, the leader and the follower, compete to attract customers of high-speed
internet connection. The leader acts first by opening some base stations, anticipating that the follower will react by creating her own base stations and renting some leader’s stations. Each customer patronizes an operator with the highest speed of connection for him. Each operator aims to maximize own profit. We provide a formulation of this game as a bi-level nonlinear integer programming problem, where the leader and the follower maximize their own profits at the first and second levels, respectively and the customers move from one operator to another until the Nash equilibrium is reached. Local search heuristics for this problem are designed and tested on randomly generated and real data. Computational experiments show high efficiency of the approach.


Stackelberg game, bi-level programming, competitive location, cellular network.

Full Text:


Disclaimer/Regarding indexing issue:

We have provided the online access of all issues and papers to the indexing agencies (as given on journal web site). It’s depend on indexing agencies when, how and what manner they can index or not. Hence, we like to inform that on the basis of earlier indexing, we can’t predict the today or future indexing policy of third party (i.e. indexing agencies) as they have right to discontinue any journal at any time without prior information to the journal. So, please neither sends any question nor expects any answer from us on the behalf of third party i.e. indexing agencies.Hence, we will not issue any certificate or letter for indexing issue. Our role is just to provide the online access to them. So we do properly this and one can visit indexing agencies website to get the authentic information. Also: DOI is paid service which provided by a third party. We never mentioned that we go for this for our any journal. However, journal have no objection if author go directly for this paid DOI service.