Two-Stage Facility Location Games with Strategic Clients and Facilities
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Abstract (arXiv)
We consider non-cooperative facility location games where both facilities and clients act strategically and heavily influence each other. This contrasts established game-theoretic facility location models with non-strategic clients that simply select the closest opened facility. In our model, every facility location has a set of attracted clients and each client has a set of shopping locations and a weight that corresponds to her spending capacity. Facility agents selfishly select a location for opening their facility to maximize the attracted total spending capacity, whereas clients strategically decide how to distribute their spending capacity among the opened facilities in their shopping range. We focus on a natural client behavior similar to classical load balancing: our selfish clients aim for a distribution that minimizes their maximum waiting times for getting serviced, where a facility's waiting time corresponds to its total attracted client weight. We show that subgame perfect equilibria exist and give almost tight constant bounds on the Price of Anarchy and the Price of Stability, which even hold for a broader class of games with arbitrary client behavior. Since facilities and clients influence each other, it is crucial for the facilities to anticipate the selfish clients' behavior when selecting their location. For this, we provide an efficient algorithm that also implies an efficient check for equilibrium. Finally, we show that computing a socially optimal facility placement is NP-hard and that this result holds for all feasible client weight distributions.
Key facts. Cited by 5 papers in the map (data through 14 Oct 2026). Builds on 6 of its 48 references that are in the map. First posted on arXiv 4 May 2021.
Builds on
6 of 48 references.
References · 6
- 2016Hotelling-Downs Model with Limited Attractioncited by 4
- 2019From Hotelling to Load Balancing: Approximation and the Principle of Minimum Differentiationcited by 4
- 2019Hotelling Games with Random Tolerance Intervalscited by 3
- 2016Voronoi Choice Gamescited by 2
- 2019On One-Round Discrete Voronoi Gamescited by 2
- 2020Spatial competition with unit-demand functionscited by 2
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Citing papers per year: 2022: 1; 2023: 2; 2024: 1; 2025: 1.
5 papers.
- 2022Strategic Facility Location with Clients that Minimize Total Waiting Timecited by 3
- 2023Proportional Fairness in Obnoxious Facility Locationcited by 3
- 2023Strategic Resource Selection with Homophilic Agentscited by 2
- 2024Equilibria in Two-Stage Facility Location with Atomic Clientscited by 1
- 2025The Bakers and Millers Game with Restricted Locationscited by 0
- 2025The Bakers and Millers Game with Restricted Locations9 Jan 2025
- 2024Equilibria in Two-Stage Facility Location with Atomic Clients5 Mar 2024
- 2023Strategic Resource Selection with Homophilic Agents1 May 2023
- 2023Proportional Fairness in Obnoxious Facility Location11 Jan 2023
- 2022Strategic Facility Location with Clients that Minimize Total Waiting Time25 Nov 2022