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The Egalitarian Sharing Rule in the Provision of Public Projects

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.
(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 the Provision of Public Projects," IDEI Working Papers 364, Institut d'Économie Industrielle (IDEI), Toulouse.
    • Handle: RePEc:ide:wpaper:1320
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    Cited by:

    1. Savvateev, A., 2013. "Coalitional Stability of a "Bipolar World"," Journal of the New Economic Association, New Economic Association, vol. 17(1), pages 10-43.
    2. Anna Bogomolnaia & Michel Breton & Alexei Savvateev & Shlomo Weber, 2007. "Stability under unanimous consent, free mobility and core," International Journal of Game Theory, Springer;Game Theory Society, vol. 35(2), pages 185-204, January.

    More about this item

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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