The Tiebout Model

The Tiebout Model suggests that local governments act like businesses, offering different packages of public services and taxes. People "vote with their feet" by moving to communities that best match their preferences for services (like schools, parks, and safety) and tax levels. This competition among cities encourages efficiency and responsiveness, as each community strives to attract residents by tailoring its offerings. Essentially, it illustrates how mobility can lead to better public service allocation, as individuals seek out the environments that suit their needs.