Stability of jurisdiction structures under the equal share and median rules
In this paper we consider a model with multiple jurisdictions where each formed jurisdiction selects a public project from the given uni-dimensional set, equally shares its cost among its members and places the project at the location of its median resident. We examine a cooperative concept of core stability and a non-cooperative notion of Nash stability of jurisdiction structures. We first consider hedonic games, where each jurisdiction chooses the mean of the extreme points of its median set, and show that both stability notions may lead to an empty set of stable jurisdiction structures. We demonstrate that in a quasi-hedonic set-up, where jurisdictions are allowed to pick any selection from the median set, there is a Nash stable partition, while a core stable partition may still fail to exist. We also consider the equidistant societies and show the existence of both types of stable partitions in this case. Finally, we examine stratification properties of stable partitions.
(This abstract was borrowed from another version of this item.)
Volume (Year): 34 (2008)
Issue (Month): 3 (March)
|Contact details of provider:|| Web page: http://link.springer.de/link/service/journals/00199/index.htm |
|Order Information:||Web: http://link.springer.de/orders.htm|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Tayfun Sönmez & Suryapratim Banerjee & Hideo Konishi, 2001.
"Core in a simple coalition formation game,"
Social Choice and Welfare,
Springer, vol. 18(1), pages 135-153.
- Mas-Colell, Andreu, 1980. "Efficiency and Decentralization in the Pure Theory of Public Goods," The Quarterly Journal of Economics, MIT Press, vol. 94(4), pages 625-41, June.
- Philippe JEHIEL & Suzanne SCOTCHMER, 1997. "Free Mobility and the Optimal Number of Jurisdictions," Annales d'Economie et de Statistique, ENSAE, issue 45, pages 219-231.
- Haimanko, Ori & Le Breton, Michel & Weber, Shlomo, 2005. "Transfers in a polarized country: bridging the gap between efficiency and stability," Journal of Public Economics, Elsevier, vol. 89(7), pages 1277-1303, July.
- Monderer, Dov & Shapley, Lloyd S., 1996. "Potential Games," Games and Economic Behavior, Elsevier, vol. 14(1), pages 124-143, May.
- Alesina, Alberto & Spolaore, Enrico, 1997.
"On the Number and Size of Nations,"
The Quarterly Journal of Economics,
MIT Press, vol. 112(4), pages 1027-56, November.
- Le Breton, Michel & Weber, Shlomo, 2003. "The Art of Making Everybody Happy : How to Prevent a Secession," IDEI Working Papers 164, Institut d'Économie Industrielle (IDEI), Toulouse.
- Dreze, Jacques & Le Breton, Michel & Weber, Shlomo, 2007.
"Rawlsian pricing of access to public facilities: A unidimensional illustration,"
Journal of Economic Theory,
Elsevier, vol. 136(1), pages 759-766, September.
- Dreze, Jacques & Le Breton, Michel & Weber, Shlomo, 2006. "Rawlsian Pricing of Access to Public Facilities: A Unidimensional Illustration," IDEI Working Papers 409, Institut d'Économie Industrielle (IDEI), Toulouse.
- Konishi, Hideo & Le Breton, Michel & Weber, Shlomo, 1997. "Pure Strategy Nash Equilibrium in a Group Formation Game with Positive Externalities," Games and Economic Behavior, Elsevier, vol. 21(1-2), pages 161-182, October.
- Bogomolnaia, Anna & Jackson, Matthew O., 2002. "The Stability of Hedonic Coalition Structures," Games and Economic Behavior, Elsevier, vol. 38(2), pages 201-230, February.
- Greenberg, Joseph & Weber, Shlomo, 1986. "Strong tiebout equilibrium under restricted preferences domain," Journal of Economic Theory, Elsevier, vol. 38(1), pages 101-117, February.
- Casella, Alessandra, 2001.
"The Role of Market Size in the Formation of Jurisdictions,"
Review of Economic Studies,
Wiley Blackwell, vol. 68(1), pages 83-108, January.
- Casella, Alessandra, 1996. "The Role of Market Size in the Formation of Jurisdictions," CEPR Discussion Papers 1429, C.E.P.R. Discussion Papers.
- Jehiel, Philippe & Scotchmer, Suzanne, 2001. "Constitutional Rules of Exclusion in Jurisdiction Formation," Review of Economic Studies, Wiley Blackwell, vol. 68(2), pages 393-413, April.
- Konishi, Hideo & Le Breton, Michel & Weber, Shlomo, 1998. "Equilibrium in a Finite Local Public Goods Economy," Journal of Economic Theory, Elsevier, vol. 79(2), pages 224-244, April.
When requesting a correction, please mention this item's handle: RePEc:spr:joecth:v:34:y:2008:i:3:p:525-543. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn)or (Christopher F Baum)
If references are entirely missing, you can add them using this form.