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Anonymous Lindahl Pricing in a Tiebout Economy with Crowding Types

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  • John P. Conley
  • Myrna Wooders

Abstract

The 'crowding types' model of a local public goods economy makes a distinction between crowding effects and tastes of agents. Decentralization of the core is possible both with anonymous admission prices that depend only on publicly observable information and, when technology is linear, with Lindahl (per unit) prices. Lindahl price systems are superior to admission prices, since they can he specified with only a finite number of prices. Here, the authors show that the core is equivalent to the set of nonanonymous Lindahl equilibria, even with nonlinear technology. The core is generally larger, however, than the set of anonymous Lindahl equilibria.

Suggested Citation

  • John P. Conley & Myrna Wooders, 1998. "Anonymous Lindahl Pricing in a Tiebout Economy with Crowding Types," Canadian Journal of Economics, Canadian Economics Association, vol. 31(4), pages 952-974, November.
  • Handle: RePEc:cje:issued:v:31:y:1998:i:4:p:952-974
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    References listed on IDEAS

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    1. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416-416.
    2. Kaneko, Mamoru & Wooders, Myrna Holtz, 1996. "The Nonemptiness of the f-Core of a Game without Side Payments," International Journal of Game Theory, Springer;Game Theory Society, vol. 25(2), pages 245-258.
    3. Wooders, Myrna Holtz, 1989. "A Tiebout theorem," Mathematical Social Sciences, Elsevier, vol. 18(1), pages 33-55, August.
    4. Cole, Harold L. & Prescott, Edward C., 1997. "Valuation Equilibrium with Clubs," Journal of Economic Theory, Elsevier, vol. 74(1), pages 19-39, May.
    5. Shubik, Martin & Wooders, Myrna Holtz, 1983. "Approximate cores of replica games and economies. Part I: Replica games, externalities, and approximate cores," Mathematical Social Sciences, Elsevier, vol. 6(1), pages 27-48, October.
    6. Rajiv Vohra, 1990. "On the Inefficiency of Two-Part Tariffs," Review of Economic Studies, Oxford University Press, vol. 57(3), pages 415-438.
    7. Wooders, Myrna Holtz, 1988. "Stability of jurisdiction structures in economies with local public goods," Mathematical Social Sciences, Elsevier, vol. 15(1), pages 29-49, February.
    8. Conley, John P. & Wooders, Myrna, 1996. "Taste-homogeneity of optimal jurisdictions in a Tiebout economy with crowding types and endogenous educational investment choices," Ricerche Economiche, Elsevier, vol. 50(4), pages 367-387, December.
    9. Boadway, Robin, 1980. "A note on the market provision of club goods," Journal of Public Economics, Elsevier, vol. 13(1), pages 131-137, February.
    10. John P. Conley & Myrna Wooders, 1998. "Anonymous Lindahl Pricing in a Tiebout Economy with Crowding Types," Canadian Journal of Economics, Canadian Economics Association, vol. 31(4), pages 952-974, November.
    11. Bruce W. Hamilton, 1975. "Zoning and Property Taxation in a System of Local Governments," Urban Studies, Urban Studies Journal Limited, vol. 12(2), pages 205-211, June.
    12. Martin Shubik & Myrna Holtz Wooders, 1982. "Near-Markets and Market Games," Cowles Foundation Discussion Papers 657, Cowles Foundation for Research in Economics, Yale University.
    13. Berglas, Eitan & Pines, David, 1981. "Clubs, local public goods and transportation models : A synthesis," Journal of Public Economics, Elsevier, vol. 15(2), pages 141-162, April.
    14. Kaneko, Mamoru & Wooders, Myrna Holtz, 1982. "Cores of partitioning games," Mathematical Social Sciences, Elsevier, vol. 3(4), pages 313-327, December.
    15. Scotchmer, Suzanne & Wooders, Myrna Holtz, 1987. "Competitive equilibrium and the core in club economies with anonymous crowding," Journal of Public Economics, Elsevier, vol. 34(2), pages 159-173, November.
    16. Barham, V. & Wooders, M.H., 1994. "First and Second Welfare Theorems for Economies with Collective Goods," Working Papers 9415e, University of Ottawa, Department of Economics.
    17. Wooders, Myrna Holtz, 1983. "The epsilon core of a large replica game," Journal of Mathematical Economics, Elsevier, vol. 11(3), pages 277-300, July.
    18. Myrna Holtz Wooders, 1996. "Equivalence of Lindahl equilibrium with participation prices and the core (*)," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 9(1), pages 115-127.
    19. Epple, Dennis & Romano, Richard E, 1998. "Competition between Private and Public Schools, Vouchers, and Peer-Group Effects," American Economic Review, American Economic Association, vol. 88(1), pages 33-62, March.
    20. Kovalenkov, A. & Wooders, M.H., 1997. "Three Theorems on Non-Emptiness of Approximate Cores: Part 1. Game Theoretic Results," UFAE and IAE Working Papers 390.97, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    21. Robert W. Helsley & William C. Strange, 1991. "Exclusion and the Theory of Clubs," Canadian Journal of Economics, Canadian Economics Association, vol. 24(4), pages 889-899, November.
    22. Wooders, Myrna, 1978. "Equilibria, the core, and jurisdiction structures in economies with a local public good," Journal of Economic Theory, Elsevier, vol. 18(2), pages 328-348, August.
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    Citations

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    Cited by:

    1. John P. Conley & Myrna Holtz Wooders, 1998. "The Tiebout Hypothesis: On the Existence of Pareto Efficient Competitive Equilibrium," Working Papers mwooders-98-06, University of Toronto, Department of Economics.
    2. Conley, John P. & Wooders, Myrna H., 2001. "Tiebout Economies with Differential Genetic Types and Endogenously Chosen Crowding Characteristics," Journal of Economic Theory, Elsevier, vol. 98(2), pages 261-294, June.
    3. John P. Conley & Myrna Wooders, 1998. "Anonymous Lindahl Pricing in a Tiebout Economy with Crowding Types," Canadian Journal of Economics, Canadian Economics Association, vol. 31(4), pages 952-974, November.
    4. Bucovetsky, Sam & Glazer, Amihai, 2014. "Efficiency, equilibrium and exclusion when the poor chase the rich," Journal of Urban Economics, Elsevier, vol. 81(C), pages 166-177.
    5. Kovalenkov, Alexander & Wooders, Myrna Holtz, 1999. "Epsilon cores of games and economies with limited side payments," Economic Research Papers 269257, University of Warwick - Department of Economics.
    6. Kovalenkov, Alexander & Wooders, Myrna Holtz, 2001. "Approximate cores of games and economies with clubs," Economic Research Papers 269256, University of Warwick - Department of Economics.

    More about this item

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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