Research on Competitive Location of Restaurants Based on Utility Theory
Abstract
For a chain restaurant planning to expand its business, the primary challenge lies in focusing on how to determine the optimal location for a new restaurant through the optimization of site selection methods. For a better analysis, this paper establishes the Maximum Market Share Model (Model I), with model elements decomposed into population distribution, purchasing power, and consumption habits. The Logit utility function representing consumer choice behavior is incorporated into the site selection model, establishing the Maximum Market Coverage Model based on competitors (Model II). Sensitivity analysis indicates that purchasing power and distance factors in consumption habits are more sensitive than other factors. Stability analysis shows that the improved iterative algorithm converges quickly and produces highly stable results.
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APA:
Lin, M., Liu, J., & Ren, X. (2024). Research on competitive location of restaurants based on utility theory. International Scientific Technical and Economic Research, 2(2), 1–9. http://www.istaer.online/index.php/Home/article/view/No.2430
GB/T 7714-2015:
Lin Mingyang, Liu Jiaqi, Ren Xinsiyue. Research on competitive location of restaurants based on utility theory[J]. International Scientific Technical and Economic Research, 2024, 2(2): 1–9. http://www.istaer.online/index.php/Home/article/view/No.2430
MLA:
Lin, Mingyang, Jiaqi Liu, and Xinsiyue Ren. "Research on competitive location of restaurants based on utility theory." International Scientific Technical and Economic Research, 2.2 (2024): 1-9. http://www.istaer.online/index.php/Home/article/view/No.2430
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