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Solidarity in Choosing a Location on a Cycle

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  • GORDON, Sidartha

Abstract

We study the implications of two solidarity conditions on the efficient location of a public good on a cycle, when agents have single-peaked, symmetric preferences. Both conditions require that when circumstances change, the agents not responsible for the change should all be affected in the same direction: either they all gain or they all loose. The first condition, population-monotonicity, applies to arrival or departure of one agent. The second, replacement-domination, applies to changes in the preferences of one agent. Unfortunately, no Pareto-efficient solution satisfies any of these properties. However, if agents’ preferred points are restricted to the vertices of a small regular polygon inscribed in the circle, solutions exist. We characterize them as a class of efficient priority rules.

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Bibliographic Info

Paper provided by Centre interuniversitaire de recherche en économie quantitative, CIREQ in its series Cahiers de recherche with number 17-2006.

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Length: 34 pages
Date of creation: 2006
Date of revision:
Handle: RePEc:mtl:montec:17-2006

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Keywords: Location Theory; Cycle; Efficiency; Population-monotonicity; Replacement-Domination; Single-Peaked;

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References

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  1. Vohra, Rakesh V., 1999. "The replacement principle and tree structured preferences," Economics Letters, Elsevier, vol. 63(2), pages 175-180, May.
  2. Ching, S. & Thomson, W., 1993. "Population-Monotonic Solutions in Public Good Economies with Single- Peaked Preferences," RCER Working Papers 362, University of Rochester - Center for Economic Research (RCER).
  3. GORDON, Sidartha, 2006. "Public Decisions: Solidarity and the Status Quo," Cahiers de recherche 2006-05, Universite de Montreal, Departement de sciences economiques.
  4. William Thomson, 1999. "Welfare-domination under preference-replacement: A survey and open questions," Social Choice and Welfare, Springer, vol. 16(3), pages 373-394.
  5. H. Moulin, 1980. "On strategy-proofness and single peakedness," Public Choice, Springer, vol. 35(4), pages 437-455, January.
  6. Eiichi Miyagawa, 2001. "Locating libraries on a street," Social Choice and Welfare, Springer, vol. 18(3), pages 527-541.
  7. Ehlers, Lars, 2002. "Multiple public goods and lexicographic preferences: replacement principle," Journal of Mathematical Economics, Elsevier, vol. 37(1), pages 1-15, February.
  8. Schummer, James & Vohra, Rakesh V., 2002. "Strategy-proof Location on a Network," Journal of Economic Theory, Elsevier, vol. 104(2), pages 405-428, June.
  9. Moulin, Herve, 1987. "The Pure Compensation Problem: Egalitarianism versus Laissez-Fairism," The Quarterly Journal of Economics, MIT Press, vol. 102(4), pages 769-83, November.
  10. Bettina Klaus, 2001. "Target Rules for Public Choice Economies on Tree Networks and in Euclidean Spaces," Theory and Decision, Springer, vol. 51(1), pages 13-29, August.
  11. Ehlers, Lars, 2003. "Multiple public goods, lexicographic preferences, and single-plateaued preference rules," Games and Economic Behavior, Elsevier, vol. 43(1), pages 1-27, April.
  12. Thomson, W., 1992. "The Replacement Principle in Public Good Economies with Single-Peaked Preferences," RCER Working Papers 340, University of Rochester - Center for Economic Research (RCER).
  13. Ehlers, Lars & Klaus, Bettina, 2001. " Solidarity and Probabilistic Target Rules," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 3(2), pages 167-84.
  14. William Thomson, 2007. "Fair Allocation Rules," RCER Working Papers 539, University of Rochester - Center for Economic Research (RCER).
  15. Moulin, Herve, 1994. "Social choice," 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 31, pages 1091-1125 Elsevier.
  16. Thomson, William, 1983. "Problems of fair division and the Egalitarian solution," Journal of Economic Theory, Elsevier, vol. 31(2), pages 211-226, December.
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Citations

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Cited by:
  1. Thomson, William, 2011. "Chapter Twenty-One - Fair Allocation Rules," Handbook of Social Choice and Welfare, in: K. J. Arrow & A. K. Sen & K. Suzumura (ed.), Handbook of Social Choice and Welfare, edition 1, volume 2, chapter 21, pages 393-506 Elsevier.
  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.
  3. Gordon, Sidartha, 2007. "Public decisions: Solidarity and the status quo," Games and Economic Behavior, Elsevier, vol. 61(2), pages 225-241, November.
  4. BOCHET, Olivier & GORDON, Sidartha, 2008. "Priorities in the Location of Multiple Public Facilities," Cahiers de recherche 2008-07, Universite de Montreal, Departement de sciences economiques.

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