  Schelling's famous model of segregation assumes agents of different types who
would like to be located in neighborhoods having at least a certain fraction of
agents of the same type. We consider natural generalizations that allow for the
possibility of agents being tolerant towards other agents, even if they are not
of the same type. In particular, we consider an ordering of the types, and make
the realistic assumption that the agents are in principle more tolerant towards
agents of types that are closer to their own according to the ordering. Based
on this, we study the strategic games induced when the agents aim to maximize
their utility, for a variety of tolerance levels. We provide a collection of
results about the existence of equilibria, and their quality in terms of social
welfare.
