Location of an undesirable facility on a network: A bargaining approach

Kazuo Yamaguchi

Mathematical Social Sciences, 2011, vol. 62, issue 2, 104-108

Abstract: We examine a model where, on a line network, individuals collectively choose the location of an undesirable public facility through bargaining with the unanimity rule. We show the existence of a stationary subgame perfect equilibrium and the characterization of stationary subgame perfect equilibria when the discount factor is sufficiently large. Furthermore, we show that as the discount factor tends to 1, the equilibrium location can converge to a location that is least desirable according to both the Benthamite and Rawlsian criteria.

Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:eee:matsoc:v:62:y:2011:i:2:p:104-108

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