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Spatial bargaining in rectilinear facility location problem

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  • Kazuo Yamaguchi

    (Rissho University)

Abstract

We consider a spatial bargaining model where players collectively choose a facility location on a two-dimensional rectilinear distance space through bargaining using the unanimity rule. We show that as players become infinitely patient, their stationary subgame perfect equilibrium utilities converge to the utilities that satisfy the lexicographic maximin utility criterion introduced by Sen (Collective choice and social welfare, 1970).

Suggested Citation

  • Kazuo Yamaguchi, 2022. "Spatial bargaining in rectilinear facility location problem," Theory and Decision, Springer, vol. 93(1), pages 69-104, July.
    • Handle: RePEc:kap:theord:v:93:y:2022:i:1:d:10.1007_s11238-021-09838-9
    DOI: 10.1007/s11238-021-09838-9
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    References listed on IDEAS

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