Anonymous Lindahl pricing in a Tiebout economy with crowding types

Citation
Jp. Conley et Mh. Wooders, Anonymous Lindahl pricing in a Tiebout economy with crowding types, CAN J ECON, 31(4), 1998, pp. 952-974
Citations number
35
Categorie Soggetti
Economics
Journal title
CANADIAN JOURNAL OF ECONOMICS-REVUE CANADIENNE D ECONOMIQUE
ISSN journal
00084085 → ACNP
Volume
31
Issue
4
Year of publication
1998
Pages
952 - 974
Database
ISI
SICI code
0008-4085(199810)31:4<952:ALPIAT>2.0.ZU;2-J
Abstract
The 'crowding types' model of a local public goods economy makes a distinct ion between crowding effects and tastes of agents. Decentralization of the core is possible both with anonymous admission prices that depend only on p ublicly observable information and, when technology is linear, with Lindahl (per unit) prices. Lindahl price systems are superior to admission prices, since they can be specified with only a finite number of prices. Here, we show that the core is equivalent to the set of non-anonymous Lindahl equili bria, even with non-linear technology. The core is generally larger, howeve r, than the set of anonymous Lindahl equilibria.