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Heterogeneity Gap in Stable Jurisdiction Structures

Author

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  • ANNA BOGOMOLNAIA
  • MICHEL LE BRETON
  • ALEXEI SAVVATEEV
  • SHLOMO WEBER
Abstract
This paper examines a model of multijurisdiction 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 the notions of Nash and 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 jurisdictional sizes.

Suggested Citation

  • Anna Bogomolnaia & Michel Le Breton & Alexei Savvateev & Shlomo Weber, 2008. "Heterogeneity Gap in Stable Jurisdiction Structures," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 10(3), pages 455-473, June.
    • Handle: RePEc:bla:jpbect:v:10:y:2008:i:3:p:455-473
    DOI: 10.1111/j.1467-9779.2008.00372.x
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    as
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    Cited by:

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    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

    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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