November 26, 2015 

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TIEBOUT HYPOTHESIS: The notion that people relocate from one political jurisdiction to another in search of a more preferred package of government taxes and spending. This hypothesis suggests that people "shop" for compatible government activity in the same way they might shop for a car, a house, or a flavor of ice cream. The Tiebout hypothesis indicates that people have two methods of "voting" on government activity -- one is at the ballot box the other is with their feet by seeking a more preferred location.

     See also | public choice | logrolling | explicit logrolling | majority rule | super majority rule | unanimity rule | plurality rule | principal-agent problem | principle of the median voter | term limits | line item veto | sunset law |

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TIEBOUT HYPOTHESIS, AmosWEB GLOSS*arama,, AmosWEB LLC, 2000-2015. [Accessed: November 26, 2015].

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The sixth of seven basic rules of the economy, stating that obtaining information is a costly activity that requires resources with alternative uses. As such, no one knows everything and everyone is ignorant about something.

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State of the ECONOMY

U.S. Exports
June 2015
$188.6 billion
Down 0.1% from May 2015: Econ. Stat. Admin.

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Today, you are likely to spend a great deal of time at an auction wanting to buy either a small palm tree that will fit on your coffee table or several magazines on fashion design. Be on the lookout for crowded shopping malls.
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The wealthy industrialist, Andrew Carnegie, was once removed from a London tram because he lacked the money needed for the fare.
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