Local public good equilibrium

• 成果类型: Article
• 署名作者: Chan, Nathan W.; van den Nouweland, Anne
• 署名单位: University of Massachusetts System; University of Massachusetts Amherst; University of Oregon
• 刊物名称: GAMES AND ECONOMIC BEHAVIOR
• ISSN/ISSBN: 0899-8256
• DOI: 10.1016/j.geb.2024.11.007
• 发表日期: 2025
• 页码: 32-42
• 关键词: Local public good economy; Ratio equilibrium; share function; Hedonic game; Tiebout sorting

摘要

We extend ratio equilibrium to local public good economies by defining Local Public Good Equilibrium (LPGE). We employ share functions for individual agents that allow easy comparisons of consumption utility, both across consumption bundles and across jurisdiction memberships. Share functions furthermore aggregate for parsimonious calculation of equilibrium public good provision within each potential jurisdiction, allowing us to establish a link with hedonic games and deploy results from that literature. We demonstrate in examples how this enables us to show LPGE existence for a far wider class of economies than prior work seeking to extend ratio equilibrium to local public good economies. In particular, we demonstrate LPGE existence with heterogeneous agents, a finite number of agents and jurisdictions, endogenous jurisdictional revenues and expenditures, and robustness against coalitional deviations. LPGE admits wide-ranging jurisdiction structures, and we demonstrate how it can generate results on sorting that have attracted interest in the extant literature.