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AI settling behavior

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Does anyone know what rules (if any) the AI uses to settle new cities? I can understand resources are key here but do they value certain resources over others?

Also i'm wondering if distance to their other cities matter.

The reason i'm asking is because i started a game as Victoria and Ragnar planted a city relatively far from his own territory and close to mine. The only reason i can understand him doing this is the iron (he already had some). Am i missing something here or is it more or less random which sites they pick for new cities?

Spoiler:


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