In a range of settings, private firms manage peer effects by sorting agents into different groups, be they schools, communities, or product categories. This paper considers such a firm, which controls group entry by setting a series of anonymous prices. We show that private provision...

In community development, education provision and organisational design, private firms manage peer effects by sorting agents into different neighbourhoods, schools and teams. This paper considers such a firm who controls group entry by setting a series of anonymous prices. We show that private...