Technical Note—Optimal Locations on a Line with Random Utilities
Published Online:1 Feb 1994https://doi.org/10.1287/trsc.28.1.63
Abstract
This note deals with the optimal locations of a given number of facilities when customers' behavior is described by a probabilistic choice model. In this context, the principle of median location is generalized. The optimal locations are determined in the case of the multinomial logit for different numbers of facilities.
