CeDEx workshop - Pascale Duran-Vigneron (University of Nottingham)

Social identities and Tiebout-like sorting: an experimental approach

We wish to explore the role of economic incentives and group identity in determining location selection. The Tiebout model (1956) argues that households sort themselves among local jurisdictions according to their preferences for local public goods and taxes. Heterogeneity in population can mitigate this effect, especially if individuals prefer to interact with people like themselves, regardless of preferences over public policies. As such, social identity can be a counterweight to Tiebout sorting. We propose to study the Tiebout hypothesis and how real identities (Francophone vs Anglophone in Quebec) affect location decisions in a controlled laboratory experiment.