Multijurisdictional economies, the tiebout hypothesis, and sorting.
The Tiebout Hypothesis asserts that, when it is efficient to have multiple jurisdictions providing local public goods, then competition between jurisdictions for residents will lead to a near-optimal outcome. Research from cooperative game theory both provides a foundation for the hypothesis and extends the hypothesis to diverse situations where small groups of participants are effective.
Wooders
M H
MH
Department of Economics, University of Toronto, Toronto, Canada M5S 3G7.