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Heterogeneity gap in stable juridiction structures

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Author Info

  • Anna, BOGOMOLNAIA
  • Michel, LE BRETON
  • Alexei, SAVVATEEV

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Center for Operations Research and Econometrics (CORE))

  • Sholmo, WEBER

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Center for Operations Research and Econometrics (CORE))

Abstract

This paper examines a model of multi-jurisdiction formation where individuals' characteristics are uniformly distributed over a finite interval. Every jurisdiction locates a public facility and distributes its cost equally among the residents. We consider two notions of stability: Nash stability and its refinement local Nash stability, and examine the existence and characterization of stable partitions. The main feature of this analysis is that, even under the uniform distribution, there are stable structures that exhibit a high degree of heterogeneity of jurisdiction sizes.

(This abstract was borrowed from another version of this item.)

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Bibliographic Info

Paper provided by Université catholique de Louvain, Département des Sciences Economiques in its series Discussion Papers (ECON - Département des Sciences Economiques) with number 2006019.

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Length: 27
Date of creation: 01 Mar 2006
Date of revision:
Handle: RePEc:ctl:louvec:2006019

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Related research

Keywords: Stability; Jurisdictions; Public Projects; Heterogeneity Gap;

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References

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  1. Hoxby, Caroline & Baqir, Reza & Alesina, Alberto, 2004. "Political Jurisdictions in Heterogeneous Communities," Scholarly Articles 4552532, Harvard University Department of Economics.
  2. Andrew K. Rose, 2005. "Cities and Countries," NBER Working Papers 11762, National Bureau of Economic Research, Inc.
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  5. BOGOMOLNAIA, Anna & LE BRETON, Michel & SAVVATEEV, Alexei & WEBER, Shlomo, 2006. "Stability under unanimous consent, free mobility and core," CORE Discussion Papers 2006007, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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  15. Xavier Gabaix, 1999. "Zipf'S Law For Cities: An Explanation," The Quarterly Journal of Economics, MIT Press, vol. 114(3), pages 739-767, August.
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  17. Westhoff, Frank, 1977. "Existence of equilibria in economies with a local public good," Journal of Economic Theory, Elsevier, vol. 14(1), pages 84-112, February.
  18. Haimanko, Ori & Le Breton, Michel & Weber, Shlomo, 2005. "Transfers in a polarized country: bridging the gap between efficiency and stability," Journal of Public Economics, Elsevier, vol. 89(7), pages 1277-1303, July.
  19. Le Breton, Michel & Weber, Shlomo, 2003. "The Art of Making Everybody Happy : How to Prevent a Secession," IDEI Working Papers 164, Institut d'Économie Industrielle (IDEI), Toulouse.
  20. Greenberg, Joseph, 1994. "Coalition structures," Handbook of Game Theory with Economic Applications, in: R.J. Aumann & S. Hart (ed.), Handbook of Game Theory with Economic Applications, edition 1, volume 2, chapter 37, pages 1305-1337 Elsevier.
  21. Hoxby, Caroline & Alesina, Alberto Francesco & Baqir, Reza, 2004. "Political Jurisdictions in Heterogeneous Communities," Scholarly Articles 4553034, Harvard University Department of Economics.
  22. Jan Eeckhout, 2004. "Gibrat's Law for (All) Cities," American Economic Review, American Economic Association, vol. 94(5), pages 1429-1451, December.
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Cited by:
  1. Matthias Dahm, 2010. "Free mobility and taste-homogeneity of jurisdiction structures," International Journal of Game Theory, Springer, vol. 39(1), pages 259-272, March.

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