Pools or schools or both? Diversification and specialisation in public services

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.

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Year of publication:	2019
Authors:	Dujava, Daniel ; Černěnko, Tomáš ; Rafaj, Oliver
Publisher:	Bratislava : University of Economics in Bratislava, Department of Economic Policy
Subject:	diversification \| game theory \| public services \| specialisation

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Series:	Department of Economic Policy Working Paper Series ; 20
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	1683629566 [GVK] hdl:10419/249319 [Handle] RePEc:brt:depwps:020 [RePEc]
Classification:	C72 - Noncooperative Games ; H11 - Structure, Scope, and Performance of Government
Source:	EconStor

Persistent link: https://www.econbiz.de/10012803907