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Stable Assignment of Public Facilities under Congestion

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  • ANNA BOGOMOLNAIA
  • ANTONIO NICOLÒ

Abstract

We study the problem of locating multiple public facilities when each member of society has to be assigned to exactly one of these facilities. Individuals' preferences are assumed to be single‐peaked over the interval of possible locations and negatively affected by congestion. We characterize strategy‐proof, efficient, and stable allocation rules when agents have to be partitioned between two groups of users and discuss the normative content of the stability property. Finally we prove that when more than two groups have to be formed, even with common information on the distribution of the peaks, there is no strategy‐proof, efficient, and stable allocation rule.

Suggested Citation

  • Anna Bogomolnaia & Antonio Nicolò, 2005. "Stable Assignment of Public Facilities under Congestion," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 7(1), pages 65-91, February.
    • Handle: RePEc:bla:jpbect:v:7:y:2005:i:1:p:65-91
    DOI: 10.1111/j.1467-9779.2005.00194.x
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    References listed on IDEAS

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    1. Arnold, Tone & Wooders, Myrna, 2002. "Dynamic Club Formation with Coordination," Economic Research Papers 269414, University of Warwick - Department of Economics.
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    Cited by:

    1. Bochet, Olivier & Gordon, Sidartha, 2012. "Priorities in the location of multiple public facilities," Games and Economic Behavior, Elsevier, vol. 74(1), pages 52-67.
    2. Jackson, M.O.Matthew O. & Nicolo, Antonio, 2004. "The strategy-proof provision of public goods under congestion and crowding preferences," Journal of Economic Theory, Elsevier, vol. 115(2), pages 278-308, April.
    3. Massó, Jordi & Nicolò, Antonio, 2008. "Efficient and stable collective choices under gregarious preferences," Games and Economic Behavior, Elsevier, vol. 64(2), pages 591-611, November.
    4. Grisel Ayllón & Diego M. Caramuta, 2016. "Single-dipped preferences with satiation: strong group strategy-proofness and unanimity," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 47(2), pages 245-264, August.
    5. Taiyo Maeda & Shigeru Matsumoto & Tadahiko Murata, 2015. "Agent Heterogeneity and Facility Congestion," Computational Economics, Springer;Society for Computational Economics, vol. 46(2), pages 189-203, August.
    6. Bhaskar Dutta & Anirban Kar & John A. Weymark, 2022. "Strategy-proof club formation with indivisible club facilities," Review of Economic Design, Springer;Society for Economic Design, vol. 26(3), pages 261-284, September.
    7. Fan-Chin Kung, 2010. "Coalition formation with local public goods and group-size effect," International Journal of Game Theory, Springer;Game Theory Society, vol. 39(4), pages 573-583, October.
    8. Masashi Umezawa, 2012. "The replacement principle for the provision of multiple public goods on tree networks," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 38(2), pages 211-235, February.
    9. Yan Long, 2019. "Strategy-proof group selection under single-peaked preferences over group size," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 68(3), pages 579-608, October.
    10. Jordi Massó & Antonio Nicolò, 2004. "Efficient and Stable Collective Choices under Crowding Preferences," Working Papers 148, Barcelona School of Economics.
    11. Aziz, Haris & Chan, Hau & Lee, Barton E. & Parkes, David C., 2020. "The capacity constrained facility location problem," Games and Economic Behavior, Elsevier, vol. 124(C), pages 478-490.

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