Unformatted text preview: Clubs are established to accommodate
people with different preferences.
people Clubs with members with a high degree of
preference for goods and high aversion to
congestion, will charge a high membership
fee and be exclusive.
fee Municipalities are also clubs. Different communities have different
combinations of services and taxes.
combinations People choose with their feet.
People People will relocate to locations that provide them
People with the optimal combination of environmental
amenities, employment, congestion, and taxes.
Some people who prefer a high degree of services
with high taxes, wi...
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- Spring '11
- Public Good, congestion, Suboptimal, David Zilberman, Congestion- utility declines