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Outcomes of bargaining and planning in single facility location problems

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  • Kawamori, Tomohiko
  • Yamaguchi, Kazuo

Abstract

In this paper, we investigate a model where, on a tree network, players collectively choose the location of a single public facility by noncooperative alternating-offer bargaining with the unanimity rule. We show the existence of a stationary subgame perfect equilibrium and the characterization of stationary subgame perfect equilibria. We also show that the equilibrium location converges to the Rawls location (the Rawlsian social welfare maximizer) as the discount factor tends to 1; however, it does not relate to the Weber location (the Benthamite social welfare maximizer).

Suggested Citation

  • Kawamori, Tomohiko & Yamaguchi, Kazuo, 2010. "Outcomes of bargaining and planning in single facility location problems," Mathematical Social Sciences, Elsevier, vol. 59(1), pages 38-45, January.
    • Handle: RePEc:eee:matsoc:v:59:y:2010:i:1:p:38-45
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    References listed on IDEAS

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    1. Rubinstein, Ariel, 1982. "Perfect Equilibrium in a Bargaining Model," Econometrica, Econometric Society, vol. 50(1), pages 97-109, January.
    2. Hansen, Pierre & Thisse, Jacques-Francois, 1981. "Outcomes of voting and planning : Condorcet, Weber and Rawls locations," Journal of Public Economics, Elsevier, vol. 16(1), pages 1-15, August.
    3. Bandelt, Hans-Jurgen, 1985. "Networks with condorcet solutions," European Journal of Operational Research, Elsevier, vol. 20(3), pages 314-326, June.
    4. Cardona, Daniel & Ponsati, Clara, 2007. "Bargaining one-dimensional social choices," Journal of Economic Theory, Elsevier, vol. 137(1), pages 627-651, November.
    5. Banks, Jeffrey s. & Duggan, John, 2000. "A Bargaining Model of Collective Choice," American Political Science Review, Cambridge University Press, vol. 94(1), pages 73-88, March.
    6. Labbe, Martine, 1985. "Outcomes of voting and planning in single facility location problems," European Journal of Operational Research, Elsevier, vol. 20(3), pages 299-313, June.
    7. Campos Rodriguez, Clara M. & Moreno Perez, Jose A., 2003. "Relaxation of the Condorcet and Simpson conditions in voting location," European Journal of Operational Research, Elsevier, vol. 145(3), pages 673-683, March.
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    Cited by:

    1. Kazuo Yamaguchi, 2016. "Borda winner in facility location problems on sphere," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 46(4), pages 893-898, April.
    2. Yamaguchi, Kazuo, 2011. "Location of an undesirable facility on a network: A bargaining approach," Mathematical Social Sciences, Elsevier, vol. 62(2), pages 104-108, September.
    3. Kazuo Yamaguchi, 2022. "Spatial bargaining in rectilinear facility location problem," Theory and Decision, Springer, vol. 93(1), pages 69-104, July.

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