I think as the parent poster was saying, this is possible with smaller groups. I think the best example would be townships in the US. Different townships decide on the level of tax and investing (especially into school systems.) Then, individuals self-select themselves into groups by choosing where to live.
I have friends upset about how not all schools are "top-tier" schools. I quote "top-tier" as it is in the eye of the beholder what that means. The thing is, not everyone wants their kids to have 5hrs of homework a night. Nor does everyone want to pay 20k+ in annual property taxes. Some would rather home-school or send their kids to private or parochial schools.
People often achieve this by joining a township that agrees with their appetites in spending and other political choices.