A mechanism design approach to the Tiebout Hypothesis

International audienceWe revisit the Tiebout hypothesis in a world in which agents may learn extra informationas to how they value the various local public goods once located, and jurisdictionsare free to commit to whatever mechanism to attract citizens. It is shown inquasi-linear environments that eciency can be achieved as a competitive equilibriumwhen jurisdictions seek to maximize local revenues but not necessarily when they seekto maximize local welfare. Interpretations and limitations of the result are discussed