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Locating Public Facilities by Majority: Stability, Consistency and Group Formation

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  • Carmen Beviá
  • Salvador Barberà

Abstract

We consider the following allocation problem: A fixed number of public facilities must be located on a line. Society is composed of N agents, who must be allocated to one and only one of these facilities. Agents have single peaked preferences over the possible location of the facilities they are assigned to, and do not care about the location of the rest of facilities. There is no congestion. We show that there exist social choice correspondences that choose locations and assign agents to them in such a way that: (1) these decisions are Condorcet winners whenever one exists, (2) the majority of the users of each facility supports the choice of its location, and (3) no agent wishes to become a user of another facility, even if that could induce a change of its present location by majority voting.

Suggested Citation

  • Carmen Beviá & Salvador Barberà, 2003. "Locating Public Facilities by Majority: Stability, Consistency and Group Formation," Working Papers 128, Barcelona Graduate School of Economics.
  • Handle: RePEc:bge:wpaper:128
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    References listed on IDEAS

    as
    1. Salvador Barber?Author-Name: Carmen Bevi?Author-Email: Carmen.Bevia@uab.es, "undated". "Stable Condorcet Rules," UFAE and IAE Working Papers 539.02, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    2. Bogomolnaia, Anna & Jackson, Matthew O., 2002. "The Stability of Hedonic Coalition Structures," Games and Economic Behavior, Elsevier, vol. 38(2), pages 201-230, February.
    3. Tayfun Sönmez & Suryapratim Banerjee & Hideo Konishi, 2001. "Core in a simple coalition formation game," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 18(1), pages 135-153.
    4. Barbera, Salvador & Bevia, Carmen, 2002. "Self-Selection Consistent Functions," Journal of Economic Theory, Elsevier, vol. 105(2), pages 263-277, August.
    5. Milchtaich, Igal & Winter, Eyal, 2002. "Stability and Segregation in Group Formation," Games and Economic Behavior, Elsevier, vol. 38(2), pages 318-346, February.
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    Cited by:

    1. Ju, Biung-Ghi, 2008. "Efficiency and consistency for locating multiple public facilities," Journal of Economic Theory, Elsevier, vol. 138(1), pages 165-183, January.
    2. 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.

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