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Heterogeneity gap in stable juridiction structures

Author

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  • 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 multijurisdiction 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 the notions of Nash and 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 jurisdictional sizes.
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Suggested Citation

  • Anna, BOGOMOLNAIA & Michel, LE BRETON & Alexei, SAVVATEEV & Sholmo, WEBER, 2006. "Heterogeneity gap in stable juridiction structures," Discussion Papers (ECON - Département des Sciences Economiques) 2006019, Université catholique de Louvain, Département des Sciences Economiques.
    • Handle: RePEc:ctl:louvec:2006019
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    File URL: http://sites.uclouvain.be/econ/DP/IRES/2006-19.pdf
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    Cited by:

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    2. Matthias Dahm, 2010. "Free mobility and taste-homogeneity of jurisdiction structures," International Journal of Game Theory, Springer;Game Theory Society, vol. 39(1), pages 259-272, March.

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    More about this item

    Keywords

    Stability; Jurisdictions; Public Projects; Heterogeneity Gap;
    All these keywords.

    JEL classification:

    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects

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