Rawlsian pricing of access to public facilities: A unidimensional illustration
Abstract We consider a setting where citizens using a public facility face an idiosyncratic private access cost and must also contribute to the costs of facility. We show that if the population is uniformly spread over the real line, the cost of a facility is independent of location and access costs are linear in distance, the Rawlsian access pricing is the unique cost sharing solution that satisfies the “core property” of secession-proofness. The latter amounts to the voluntary participation principle under which no group of citizens should be charged more than the cost incurred if it had acted on its own.