Equilibria in Two-Stage Facility Location with Atomic Clients
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Abstract (arXiv)
We consider competitive facility location as a two-stage multi-agent system with two types of clients. For a given host graph with weighted clients on the vertices, first facility agents strategically select vertices for opening their facilities. Then, the clients strategically select which of the opened facilities in their neighborhood to patronize. Facilities want to attract as much client weight as possible, clients want to minimize congestion on the chosen facility. All recently studied versions of this model assume that clients can split their weight strategically. We consider clients with unsplittable weights but allow mixed strategies. So clients may randomize over which facility to patronize. Besides modeling a natural client behavior, this subtle change yields drastic changes, e.g., for a given facility placement, qualitatively different client equilibria are possible. As our main result, we show that pure subgame perfect equilibria always exist if all client weights are identical. For this, we use a novel potential function argument, employing a hierarchical classification of the clients and sophisticated rounding in each step. In contrast, for non-identical clients, we show that deciding the existence of even approximately stable states is computationally intractable. On the positive side, we give a tight bound of 2 on the price of anarchy which implies high social welfare of equilibria, if they exist.
Key facts. Cited by 1 paper in the map (data through 7 Oct 2026). Builds on 12 of its 39 references that are in the map. First posted on arXiv 5 Mar 2024.
Builds on
12 of 39 references.
References · 12
- 2021Mechanism Design for Facility Location Problems: A Surveycited by 16
- 2021Two-Stage Facility Location Games with Strategic Clients and Facilitiescited by 5
- 2016Hotelling-Downs Model with Limited Attractioncited by 4
- 2019Hedonic Diversity Gamescited by 4
- 2019From Hotelling to Load Balancing: Approximation and the Principle of Minimum Differentiationcited by 4
- 2019Hotelling Games with Random Tolerance Intervalscited by 3
- 2020Strategy Proof Mechanisms for Facility Location with Capacity Limitscited by 3
- 2022Strategic Facility Location with Clients that Minimize Total Waiting Timecited by 3
- 2021Heterogeneous Facility Location with Limited Resourcescited by 2
- 2021On Discrete Truthful Heterogeneous Two-Facility Locationcited by 2
- 2023Strategic Resource Selection with Homophilic Agentscited by 2
- 2016General distribution of consumers in pure Hotelling gamescited by 1
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Citing papers per year: 2025: 1.
1 paper.
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