Tax competition between two governments who choose nonlinear income tax schedules to maximize the average utility of their residents when skills are unobservable and labor is perfectly mobile is examined. We show that there are no equilibria in which there is a skill type that pays positive...

An aggregation rule maps each profile of individual strict preference orderings over a set of alternatives into a social ordering over that set. We call such a rule strategy-proof if misreporting one's preference never produces a different social ordering that is between the original ordering...