Benito, Juan Miguel; Brañas-Garza, Pablo; Hernández, … - Estructura de Recerca Interdisciplinar Comportament … - 2012
In this paper we experimentally test Schelling's (1971) segregation model and confirm the striking result of segregation. In addition, we extend Schelling's model theo- retically by adding strategic behavior and moving costs. We obtain a unique subgame perfect equilibrium in which rational...