How to Win a Decision in a Confederation

Jacques Thisse and Philippe Jehiel ()

No 3465, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This Paper deals with collective decision making within a group of independent jurisdictions. The right to choose the public policy is delegated from the central authority of one of the jurisdictions through a bidding procedure among the group members. We identify the following trade-off: competition among jurisdictions yields higher transfers to the government, but the outcome tends to be less efficient than what it is when jurisdictions negotiate prior to the decision-making process. We extend and illustrate the model by means of a public good game involving several heterogeneous jurisdictions.

Keywords: Jurisdictions; Confederation; Auction; Spillovers; Public good (search for similar items in EconPapers)
JEL-codes: D44 D62 H41 H70 (search for similar items in EconPapers)
Date: 2002-07
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Related works:
Journal Article: How to win a decision in a confederation (2005)
Working Paper: How to win a decision in a confederation (2005)
Working Paper: How to Win a Decision in a Confederation (2005)
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