An exploration in school formation: Income vs. Ability
ECONOMICS LETTERS, vol.117, no.2, pp.500-504, 2012 (SSCI, Scopus)
- Publication Type: Article / Article
- Volume: 117 Issue: 2
- Publication Date: 2012
- Doi Number: 10.1016/j.econlet.2012.06.048
- Journal Name: ECONOMICS LETTERS
- Journal Indexes: Social Sciences Citation Index (SSCI), Scopus
- Page Numbers: pp.500-504
- Keywords: School formation, Stable matching, Peer effects, Multilateral bargaining, Assortative matching
- Dokuz Eylül University Affiliated: No
Abstract
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.