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Heterogeneity gap in stable jurisdiction structures

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

Abstract

This paper examines a model of multi-jurisdiction formation where individuals' characteristics are uniformly distributed over a finite interval. Every jurisdiction locates a public facility and distributes its cost equally among the residents. We consider two notions of stability: Nash stability and its refinement local Nash stability, and examine the existence and characterization of stable partitions. The main feature of this analysis is that, even under the uniform distribution, there are stable structures that exhibit a high degree of heterogeneity of jurisdiction sizes.

Suggested Citation

  • BOGOMOLNAIA, Anna & LE BRETON, Michel & SAVVATEEV, Alexei & WEBER, Shlomo, 2006. "Heterogeneity gap in stable jurisdiction structures," LIDAM Discussion Papers CORE 2006036, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:2006036
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    Cited by:

    1. Jean-Marc Bourgeon & Marie-Laure Breuillé, 2023. "Citizen preferences and the architecture of government," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 61(3), pages 537-585, October.
    2. 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.

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    More about this item

    Keywords

    stability; jurisdictions; public pro jects; heterogeneity gap.;
    All these keywords.

    JEL classification:

    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects

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