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Stable Assignment of Public Facilities under Congestion

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  • ANNA BOGOMOLNAIA
  • ANTONIO NICOLO

Abstract

We study the problem of locating multiple public facilities when each member of society has to be assigned to exactly one of these facilities. Individuals' preferences are assumed to be single-peaked over the interval of possible locations and negatively affected by congestion. We characterize strategy-proof, efficient, and stable allocation rules when agents have to be partitioned between two groups of users and discuss the normative content of the stability property. Finally we prove that when more than two groups have to be formed, even with common information on the distribution of the peaks, there is no strategy-proof, efficient, and stable allocation rule. Copyright 2005 Blackwell Publishing Inc..

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Bibliographic Info

Article provided by Association for Public Economic Theory in its journal Journal of Public Economic Theory.

Volume (Year): 7 (2005)
Issue (Month): 1 (02)
Pages: 65-91

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Handle: RePEc:bla:jpbect:v:7:y:2005:i:1:p:65-91

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Cited by:
  1. Bochet, Olivier & Gordon, Sidartha, 2012. "Priorities in the location of multiple public facilities," Games and Economic Behavior, Elsevier, vol. 74(1), pages 52-67.
  2. Matthew O. Jackson & Antonio Nicolo, 2002. "The Strategy-Proof Provision of Public Goods under Congestion and Crowding Preferences," Microeconomics 0211005, EconWPA.
  3. Jordi Massó & Antonio Nicolò, 2007. "Efficient and Stable Collective Choices under Gregarious Preferences," UFAE and IAE Working Papers 714.07, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  4. Masashi Umezawa, 2012. "The replacement principle for the provision of multiple public goods on tree networks," Social Choice and Welfare, Springer, vol. 38(2), pages 211-235, February.

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