ECONOMICS LETTERS, cilt.117, sa.2, ss.500-504, 2012 (SSCI, Scopus)
We 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. (C) 2012 Elsevier B.V. All rights reserved.