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On the location of public bads: strategy-proofness under two-dimensional single-dipped preferences

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Author Info

  • Öztürk Murat
  • Peters Hans
  • Storcken Ton

    (METEOR)

Abstract

In a model with finitely many agents who have single-dipped Euclidean preferences on a polytope inthe Euclidean plane, a rule assigns to each profile of reported dips a point of the polytope. Asingle-best point is a point which is the unique point at maximal distance from some other pointof the polytope. It is proved that any strategy-proof and Pareto optimal rule is a dictatorshipunless the polytope has exactly two single-best points or it has exactly four single-best pointswhich form the vertices of a rectangle. In the latter cases strategy-proof and Pareto optimalrules can be obtained by committee voting (simple games) between the single-best alternatives.This framework models situations where public bads such as garbage dumping grounds or nuclearplants have to be located within a confined region.

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Bibliographic Info

Paper provided by Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR) in its series Research Memorandum with number 041.

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Date of creation: 2012
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Handle: RePEc:unm:umamet:2012041

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Keywords: public economics ;

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Cited by:
  1. Walter Bossert & Hans Peters, 2013. "Single-Basined Choice," Cahiers de recherche 04-2013, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
  2. Öztürk Murat & Peters Hans & Storcken Ton, 2012. "Strategy-proof location of a public bad on a disc," Research Memorandum 042, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).

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