Article ID Journal Published Year Pages File Type
957373 Journal of Economic Theory 2007 8 Pages PDF
Abstract
We consider a setting where citizens using a public facility face an idiosyncratic private access cost and must also contribute to the costs of facility. We show that if the population is uniformly spread over the real line, the cost of a facility is independent of location and access costs are linear in distance, the Rawlsian access pricing is the unique cost sharing solution that satisfies the “core property” of secession-proofness. The latter amounts to the voluntary participation principle under which no group of citizens should be charged more than the cost incurred if it had acted on its own.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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