Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/74235
Authors: 
Savvateev, Alexei
Drèze, Jacques
Le Breton, Michel
Weber, Shlomo
Year of Publication: 
2007
Series/Report no.: 
Nota di Lavoro, Fondazione Eni Enrico Mattei 68.2007
Abstract: 
Consider a population of citizens uniformly spread over the entire plane, that faces a problem of locating public facilities to be used by its members. The cost of every facility is financed by its users, who also face an idiosyncratic private access cost to the facility. We assume that the facilities’ cost is independent of location and access costs are linear with respect to the Euclidean distance. We show that an external intervention that covers 0.19% of the facility cost is sufficient to guarantee secession-proofness or no cross-subsidization, where no group of individuals is charged more than its stand alone cost incurred if it had acted on its own. Moreover, we demonstrate that in this case the Rawlsian access pricing is the only secession-proof allocation.
Subjects: 
Secession-Proofness
Optimal Jurisdictions
Rawlsian Allocation
Hexagonal Partition
Cross-Subsidization
JEL: 
D70
H20
H73
Document Type: 
Working Paper

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