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Free mobility and taste-homogeneity of jurisdiction structures

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  • Matthias Dahm

Abstract

We consider a population of agents distributed on the unit interval. Agents form jurisdictions in order to provide a public facility and share its costs equally. This creates an incentive to form large entities. Individuals also incur a transportation cost depending on their location and that of the facility which makes small jurisdictions advantageous. We consider a fairly general class of distributions of agents and generalize previous versions of this model by allowing for non-linear transportation costs. We show that, in general, jurisdictions are not necessarily homogeneous. However, they are if facilities are always intraterritory and transportation costs are superadditive. Superadditivity can be weakened to strictly increasing and strictly concave when agents are uniformly distributed. Keywords: Consecutiveness, stratification, local public goods, coalition formation, country formation. JEL Classification: C71 (Cooperative Games), D71 (Social Choice; Clubs; Committees; Associations), H73 (Interjurisdictional Differentials and Their Effects).
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  • Matthias Dahm, 2010. "Free mobility and taste-homogeneity of jurisdiction structures," International Journal of Game Theory, Springer;Game Theory Society, vol. 39(1), pages 259-272, March.
    • Handle: RePEc:spr:jogath:v:39:y:2010:i:1:p:259-272
    DOI: 10.1007/s00182-009-0209-y
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    More about this item

    Keywords

    Consecutiveness; Stratification; Local public goods; Coalition formation; Country formation; C71 (Cooperative Games); D71 (Social Choice; Clubs; Committees; Associations); H73 (Interjurisdictional Differentials and Their Effects);
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games

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