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Robust equilibria in location games

Buechel, Berno ; Roehl, Nils

In: European Journal of Operational Research, 2015, vol. 240, no. 2, p. 505-517

In the framework of spatial competition, two or more players strategically choose a location in order to attract consumers. It is assumed standardly that consumers with the same favorite location fully agree on the ranking of all possible locations. To investigate the necessity of this questionable and restrictive assumption, we model heterogeneity in consumers’ distance perceptions by...