Stability in matching markets with peer effects

Anna Bykhovskaya

Games and Economic Behavior, 2020, vol. 122, issue C, 28-54

Abstract: The paper investigates conditions which guarantee the existence of a stable outcome in a school matching in the presence of peer effects. We consider an economy where students are characterized by their type and schools are characterized by their quality and capacity. We divide students and schools into groups, so that going to a school outside of one's group is associated with additional costs or prohibited. A student receives utility from a school per se and from one's classmates.

Keywords: Matching; Peer effects; Stability; Cycles (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:gamebe:v:122:y:2020:i:c:p:28-54

DOI: 10.1016/j.geb.2020.03.010

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