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Anonymous Lindahl Pricing in a Tiebout Economy with Crowding Types

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Author Info

  • John P. Conley
  • Myrna Wooders

Abstract

The 'crowding types' model of a local public goods economy makes a distinction between crowding effects and tastes of agents. Decentralization of the core is possible both with anonymous admission prices that depend only on publicly observable information and, when technology is linear, with Lindahl (per unit) prices. Lindahl price systems are superior to admission prices, since they can he specified with only a finite number of prices. Here, the authors show that the core is equivalent to the set of nonanonymous Lindahl equilibria, even with nonlinear technology. The core is generally larger, however, than the set of anonymous Lindahl equilibria.

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Bibliographic Info

Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 31 (1998)
Issue (Month): 4 (November)
Pages: 952-974

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Handle: RePEc:cje:issued:v:31:y:1998:i:4:p:952-974

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References

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  1. Boadway, Robin, 1980. "A note on the market provision of club goods," Journal of Public Economics, Elsevier, vol. 13(1), pages 131-137, February.
  2. Myrna Holtz Wooders, 1992. "Large Games and Economies With Effective Small Groups," Discussion Paper Serie B 215, University of Bonn, Germany, revised Aug 1992.
  3. Mamoru Kaneko & Myrna Holtz Wooders, 1982. "Cores of Partitioning Games," Cowles Foundation Discussion Papers 620, Cowles Foundation for Research in Economics, Yale University.
  4. Kaneko, Mamoru & Wooders, Myrna Holtz, 1996. "The Nonemptiness of the f-Core of a Game without Side Payments," International Journal of Game Theory, Springer, vol. 25(2), pages 245-58.
  5. John P. Conley & Myrna Holtz Wooders, 1995. "Anonymous Lindahl Pricing in a Tiebout Economy with Crowding Types," Working Papers mwooders-98-02, University of Toronto, Department of Economics.
  6. Conley, John P. & Wooders, Myrna, 1996. "Taste-homogeneity of optimal jurisdictions in a Tiebout economy with crowding types and endogenous educational investment choices," Ricerche Economiche, Elsevier, vol. 50(4), pages 367-387, December.
  7. Wooders, Myrna Holtz, 1989. "A Tiebout theorem," Mathematical Social Sciences, Elsevier, vol. 18(1), pages 33-55, August.
  8. Wooders, Myrna, 1978. "Equilibria, the core, and jurisdiction structures in economies with a local public good," Journal of Economic Theory, Elsevier, vol. 18(2), pages 328-348, August.
  9. Epple, Dennis & Romano, Richard E, 1998. "Competition between Private and Public Schools, Vouchers, and Peer-Group Effects," American Economic Review, American Economic Association, vol. 88(1), pages 33-62, March.
  10. Vohra, Rajiv, 1990. "On the Inefficiency of Two-Part Tariffs," Review of Economic Studies, Wiley Blackwell, vol. 57(3), pages 415-38, July.
  11. Berglas, Eitan & Pines, David, 1981. "Clubs, local public goods and transportation models : A synthesis," Journal of Public Economics, Elsevier, vol. 15(2), pages 141-162, April.
  12. Scotchmer, Suzanne & Wooders, Myrna Holtz, 1987. "Competitive equilibrium and the core in club economies with anonymous crowding," Journal of Public Economics, Elsevier, vol. 34(2), pages 159-173, November.
  13. Harold L Cole & Edward C Prescott, 1997. "Valuation equilibrium with Clubs," Levine's Working Paper Archive 912, David K. Levine.
  14. Martin Shubik & Myrna Holtz Wooders, 1982. "Near-Markets and Market Games," Cowles Foundation Discussion Papers 657, Cowles Foundation for Research in Economics, Yale University.
  15. Kovalenkov, A. & Wooders, M.H., 1997. "Three Theorems on Non-Emptiness of Approximate Cores: Part 1. Game Theoretic Results," UFAE and IAE Working Papers 390.97, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  16. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416.
  17. Shubik, Martin & Wooders, Myrna Holtz, 1983. "Approximate cores of replica games and economies. Part I: Replica games, externalities, and approximate cores," Mathematical Social Sciences, Elsevier, vol. 6(1), pages 27-48, October.
  18. Wooders, Myrna Holtz, 1983. "The epsilon core of a large replica game," Journal of Mathematical Economics, Elsevier, vol. 11(3), pages 277-300, July.
  19. Myrna Holtz Wooders, 1996. "Equivalence of Lindahl equilibrium with participation prices and the core (*)," Economic Theory, Springer, vol. 9(1), pages 115-127.
  20. Robert W. Helsley & William C. Strange, 1991. "Exclusion and the Theory of Clubs," Canadian Journal of Economics, Canadian Economics Association, vol. 24(4), pages 889-99, November.
  21. Wooders, Myrna Holtz, 1988. "Stability of jurisdiction structures in economies with local public goods," Mathematical Social Sciences, Elsevier, vol. 15(1), pages 29-49, February.
  22. Barham, V. & Wooders, M.H., 1994. "First and Second Welfare Theorems for Economies with Collective Goods," Working Papers 9415e, University of Ottawa, Department of Economics.
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Citations

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Cited by:
  1. John P. Conley & Myrna Holtz Wooders, 1998. "The Tiebout Hypothesis: On the Existence of Pareto Efficient Competitive Equilibrium," Working Papers mwooders-98-06, University of Toronto, Department of Economics.
  2. John P. Conley & Myrna Holtz Wooders, 1995. "Anonymous Lindahl Pricing in a Tiebout Economy with Crowding Types," Working Papers mwooders-98-02, University of Toronto, Department of Economics.
  3. Sam Bucovetsky & Amihai Glazer, 2010. "Peer Group Effects, Sorting, and Fiscal Federalism," Working Papers 091006, University of California-Irvine, Department of Economics.
  4. Bucovetsky, Sam & Glazer, Amihai, 2014. "Efficiency, equilibrium and exclusion when the poor chase the rich," Journal of Urban Economics, Elsevier, vol. 81(C), pages 166-177.
  5. Conley, John P. & Wooders, Myrna H., 2001. "Tiebout Economies with Differential Genetic Types and Endogenously Chosen Crowding Characteristics," Journal of Economic Theory, Elsevier, vol. 98(2), pages 261-294, June.

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