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4 Cards in this Set
- Front
- Back
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7 Tiebout Assumptions
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Zero transaction costs
Perfect knowledge Large number of bundles No employment based constraints No externalities across bundles Community size bounded Communities work to acheive economies of scale |
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7 Tiebout Assumptions plus
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Zero transaction costs (full mobility)
Perfect knowledge (all consumers know all bundles) Large number of bundles (communities) No employment based constraints (all hold capital) No externalities across bundles (communities) Community size bounded (limited economies of scale) Communities work to acheive economies of scale |
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Relaxed 7 Tiebout Assumptions
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Transaction costs >0
Imperfect information Number of bundles gets smalller Labor markets Externalities across bundles Unlimited economies of scale Communities fail to act strategically |
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Relaxed 7 Tiebout Assumptions plus
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Transaction costs >0
Imperfect information (unknowable) Number of bundles gets smalller (only so many communities) Labor markets Externalities across bundles Unlimited economies of scale Communities fail to act strategically |
