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Locating public facilities by majority: Stability, consistency and group formation

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  • Barbera, Salvador
  • Bevia, Carmen

Abstract

We consider the following allocation problem: A fixed number of public facilities must be located on a line. Society is composed of N agents, who must be allocated to one and only one of these facilities. Agents have single peaked preferences over the possible location of the facilities they are assigned to, and do not care about the location of the rest of facilities. There is no congestion. We show that there exist social choice correspondences that choose locations and assign agents to them in such a way that: (1) these decisions are Condorcet winners whenever one exists, (2) the majority of the users of each facility supports the choice of its location, and (3) no agent wishes to become a user of another facility, even if that could induce a change of its present location by majority voting.

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Bibliographic Info

Article provided by Elsevier in its journal Games and Economic Behavior.

Volume (Year): 56 (2006)
Issue (Month): 1 (July)
Pages: 185-200

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Handle: RePEc:eee:gamebe:v:56:y:2006:i:1:p:185-200

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Web page: http://www.elsevier.com/locate/inca/622836

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References

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  1. Suryapratim Banerjee & Hideo Konishi & Tayfun Sonmez, 1999. "Core in a Simple Coalition Formation Game," Boston College Working Papers in Economics 449, Boston College Department of Economics.
  2. Bogomolnaia, Anna & Jackson, Matthew O., 2002. "The Stability of Hedonic Coalition Structures," Games and Economic Behavior, Elsevier, vol. 38(2), pages 201-230, February.
  3. Salvador Barbera & Carmen Bevia, 2000. "Self-Selection Consistent Choices," Econometric Society World Congress 2000 Contributed Papers 1322, Econometric Society.
  4. Milchtaich, Igal & Winter, Eyal, 2002. "Stability and Segregation in Group Formation," Games and Economic Behavior, Elsevier, vol. 38(2), pages 318-346, February.
  5. Barbera, Salvador & Bevia, Carmen, 2002. "Self-Selection Consistent Functions," Journal of Economic Theory, Elsevier, vol. 105(2), pages 263-277, August.
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Cited by:
  1. Biung-Ghi Ju, 2005. "Efficiency and Consistency for Locating Multiple Public Facilities," WORKING PAPERS SERIES IN THEORETICAL AND APPLIED ECONOMICS 200507, University of Kansas, Department of Economics, revised Feb 2005.
  2. 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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