This paper explores network effects in Point-to-Point airline networks by examining the spatial entry patterns of Southwest airlines during the 1990-2006 period. Estimation results from a spatial probit model reveal clear spatial dependence in profitability across different routes served by the carrier. Detailed investigation suggests two main sources of network effects, namely: (1) airport and...

The optimal locating of facilities has large effects on economic benefits, providing satisfactory service and levels of customer satisfaction. One of the new topics discussed in location problems is hub location and hub facilities are subject to unpredictable disruptions. This paper proposes a nonlinear integer model for reliable single allocation hub location problem that considers backup hub,...

Although knowledge spillovers have long been considered a critical element of economic growth in technology clusters by facilitating innovations, the relationship between characteristics of knowledge spillover network and regional cluster development is ambiguous. Based on patent co-authorship data, we construct inventor networks for two telecom clusters, New Jersey and Texas, in which the form...

Postal logistics has a complex transportation network for efficient mail delivery. Therefore, a postal logistics network consists of various functional sites with a hybrid hub-and-spoke structure. More specifically, there are multiple Delivery & Pickup Stations (D&PSs), multiple Mail Processing Centers (MPCs), and one Exchange Center (EC). In this paper, we develop two mathematical models with ...

The present study introduced a novel hierarchical hub set covering problem with capacity constraints. This study showed the significance of fixed charge costs for locating facilities, assigning hub links and designing a productivity network. The proposed model employs mixed integer programming to locate facilities and establish links between nodes according to the travel time between an origin-...

In this paper, a collaborative DSS Model for health care systems and results obtained are described. The proposed framework [1] embeds expert knowledge within DSS to provide intelligent decision support, and implements the intelligent DSS using collaboration technologies. The problem space contains several Hub and Spoke networks. Information about such networks is dynamically captured and repre...