Economics, Econometrics and Finance
8 years ago

Location choices impact payoffs in city formation games, affecting population distribution.

Lecture notes in economics and mathematical systems
Location Games with Externalities
Jaçques Durieu, Philippe Solal, Sylvie Thoron

Paper Summary

The article discusses a game where players choose locations, affecting each other's payoffs. The payoffs decrease as more locations are chosen and as populations grow. Increasing the public effect in the payoff function leads to more stable profiles, but these new profiles are not always more concentrated.

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