Why does the Tiebout model solve the problems with preference revelation that are present with Lindahl pricing?

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Public Finance and Public Policy

ISBN: 978-1429278454

4th edition

Authors: Jonathan Gruber

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Question Posted: Apr 25, 2015 07:37 AM

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The preference revelation problem associated with Lindahl pricing becomes more severe as the number of people in society increases. Why do you think this is true?
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Why does the Tiebout model solve the problems with preference revelation that are present with Lindahl pricing?

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The problems with preference revelation with Lindahl pricing arise from the fact that an individua...View the full answer

Public Finance and Public Policy

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