An exploration in school formation: income vs. ability
Alkan, Ahmet and Anbarcı, Nejat and Sarpca, Sinan (2012) An exploration in school formation: income vs. ability. Economics Letters, 117 (2). pp. 500-504. ISSN 0165-1765
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Official URL: http://dx.doi.org/10.1016/j.econlet.2012.06.048
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.
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