Peer Group and Distance: When Widening University Participation is Better

Cesi, Berardino;Paolini, Dimitri
(2014) The Manchester School — Vol. 82, n° S2, p. 110-132 (2014)

Files

pdfdocument.pdf
  • Restricted Access
  • Adobe PDF
  • 310.11 KB
Request a copy

Details

Authors
  • Cesi, BerardinoUniversity of Rome Tor Vergata, Italy
    Author
  • Paolini, DimitriUCLouvain
    Author
Abstract
We study the effect of a new university in a two-city model in which individuals' utility depends on own ability, peer group ability, formal education and mobility costs. We compare a monopoly (one university in one city) with a two-university system (one university in each city). Introducing the second university improves welfare when the fixed cost of each university is low. With two universities, we obtain a symmetric equilibrium for every mobility cost and asymmetric equilibria for low mobility costs. The symmetric system induces the highest welfare and is also Strong Nash (for high mobility costs).
Affiliations

Citations

  • APA
  • Chicago
  • FWB

Cesi, B., & Paolini, D. (2014). Peer Group and Distance: When Widening University Participation is Better. The Manchester School, 82(S2), 110-132. https://doi.org/10.1111/manc.12049 (Original work published 2014)