Review on Facility Location With Game Theory Papers

Document Type : Review paper

Authors

1 Associated professor of Industrial Eng-Iran University of Science and Technology

2 Iran University of Science and Technology

Abstract

This article reviews and categorizes the papers written on the application of game theory in facility location problems. The objective of the problem can be minimizing the transportation costs and simultaneously maximizing the maximum covering with fixed demand, a linear relation can be assumed between cost and pairwise distance of facilities.
There are some problems of location facilities in which competing companies look to maximize their market share and minimize transportation costs. These models are known as the competitive facility location. Game theory is one of the important methods to analysis these problems solving. Game theory is an appropriate method for obtaining the minimum distance and maximum market share to Reduce fixed costs and increase network utilization.
Articles related to this issue have been studied from 1929 until 2013 and an analytical report is presented. This article can be used as a reference for researchers in the field of applied game theory problems for facility location, especially on location competitive problems.

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