Discrete location game

ID: discrete-location-game

A discrete location game can model firms choosing sites from while customers at those sites choose a nearest firm. The customer masses, distance rule, permission to share a location and rule for ties are part of the model. For two firms, customer value two per site and equal splitting of ties, the payoff to a firm at against one at is
For , counting sites strictly left of the midpoint and assigning half of an equidistant site's value gives , whether is even or odd. The other firm receives the remainder, so this is a constant-sum game with total . Changing tie priority can fundamentally change its Nash equilibria, especially when co-location is permitted.

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