Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/249319 
Year of Publication: 
2019
Series/Report no.: 
Department of Economic Policy Working Paper Series No. 20
Publisher: 
University of Economics in Bratislava, Department of Economic Policy, Bratislava
Abstract: 
We develop a model of two municipalities providing two public services. We show that in case of intermediate level of transferability of public services between two municipalities, Pareto-suboptimal Nash equilibrium exists. In this case, cooperation between municipalities or merging of two municipalities into one unit would improve welfare.
Subjects: 
diversification
game theory
public services
specialisation
JEL: 
C72
H11
Document Type: 
Working Paper

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