The egalitarian sharing rule in provision of public projects
AbstractIn this note we consider a society that partitions itself into disjoint jurisdictions, each choosing a location of its public project and a taxation scheme to finance it. The set of public project is multi-dimensional, and their costs could vary from jurisdiction to jurisdiction. We impose two principles, egalitarianism, that requires the equalization of the total cost for all agents in the same jurisdiction, and efficiency, that implies the minimization of the aggregate total cost within jurisdiction. We show that these two principles always yield a core-stable partition but a Nash stable partition may fail to exist.
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Bibliographic InfoPaper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2005024.
Date of creation: 00 Mar 2005
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jurisdictions; stable partitions; public projects; egalitarianism;
Other versions of this item:
- Alexei Savvateev & Anna Bogomolnaia & Michel Le Breton & Shlomo Weber, 2005. "The Egalitarian Sharing Rule in Provision of Public Projects," Working Papers 2005.39, Fondazione Eni Enrico Mattei.
- C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
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