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The egalitarian sharing rule in provision of public goods

Author

Listed:
  • BOGOMOLNAIA, Anna
  • LE BRETON, Michel
  • SAVVATEEV, Alexei
  • WEBER, Shlomo

Abstract

In this note we consider a society that partitions itself into disjoint jurisdictions, each choosing a location of its public project and a taxation scheme to finance it. The set of public project is multi-dimensional, and their costs could vary from jurisdiction to jurisdiction. We impose two principles, egalitarianism, that requires the equalization of the total cost for all agents in the same jurisdiction, and efficiency, that implies the minimization of the aggregate total cost within jurisdiction. We show that these two principles always yield a core-stable partition but a Nash stable partition may fail to exist. We demonstrate moreover that stable partitions are not necessarily consecutive.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • BOGOMOLNAIA, Anna & LE BRETON, Michel & SAVVATEEV, Alexei & WEBER, Shlomo, 2005. "The egalitarian sharing rule in provision of public goods," LIDAM Reprints CORE 1775, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvrp:1775
    Note: In :Economics Bulletin, 8(11), 1-5, 2005
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    Cited by:

    1. Musatov, D. & Savvateev, A., 2022. "Mathematical models of stable jurisdiction partitions: A survey of results and new directions," Journal of the New Economic Association, New Economic Association, vol. 54(2), pages 12-38.

    More about this item

    JEL classification:

    • H4 - Public Economics - - Publicly Provided Goods
    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory

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