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Reexamining Tiebout Model: Exploring the Micro Behavioral Assumptions of the Tiebout Hypothesis

Michael Overton

For nearly 60 years, the theoretical implications of the Tiebout hypothesis of 1956 have driven the field’s understanding of public goods markets. For all of its predictive strengths, the Tiebout hypothesis in 1956 is built on suspect micro behavioral assumptions. This paper uses citizen mobility, citizen service evaluation, and willingness-to-pay empirical studies to reinforce and inform the Tiebout hypothesis in 1956 from a micro behavioral perspective. A series of hypotheses regarding the public goods market are generated and directions for future study are recommended.