Cremer, Helmuth; Maldonado, Darío - 2013
second stage they fix their tuition fees. We examine how the (subgame perfect Nash) equilibrium allocation (qualities … private equilibrium. We then introduce a peer group effect which, for any given school is determined by its student with the … highest ability. These PGE do have a significant impact on the results. The mixed equilibrium is now never efficient. However …