An exploration in school formation: Income vs. Ability
AbstractWe study stable school formation among four students that differ in ability and income. In the presence of ability complementarities and school costs to be shared, we identify the conditions under which a stable allocation is efficient, inefficient, nonexistent, and tell who become peers.
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Bibliographic InfoArticle provided by Elsevier in its journal Economics Letters.
Volume (Year): 117 (2012)
Issue (Month): 2 ()
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Web page: http://www.elsevier.com/locate/ecolet
School formation; Stable matching; Peer effects; Multilateral bargaining; Assortative matching;
Find related papers by JEL classification:
- C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
- I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
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