Chs. 15 & 20. Tiebout Sorting Model. The Tiebout model of sorting for local public goods predicts two things, what are they? The provision of local public goods will be distributed to households based on how much they need, regardless of their willingness to pay for the local public goods. Households will sort themselves into neighborhoods with neighbors who have different values or preferences from them – segregation will be minimal. The provision of local public goods is allocated most efficiently by a central government at the national level. Households will sort themselves into neighborhoods with neighbors who have similar preferences – segregation will be relatively high. The provision of local public goods will be determined by the preferences and willingness to pay households in each neighborhood.