A multiple allocation p-hub location problem in a Competitive Scenario: a second order conic formulation

This work presents a new second order conic formulation for a multiple allocation in a competitive scenario of p-hub location problem. We optimize the decision making process of a newly airline or entrant to establish its hub-and-spoke network amid competition. We propose a non-linear optimization formulation that instead of maximizing the capture of market share, it minimizes the lost market share. We model our problem as a mixed integer second order conic program (MISOCP), which can be solved by modern off-the-shelf solvers. Through extensive computational experiments, we show that our formulation consistently outperforms the existing approach of the literature on solving benchmark instances in terms of computational running times.