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Cicala, Steve; Fryer, Roland G., Jr.; Spenkuch, Jorg L. – National Bureau of Economic Research, 2011
We develop a Roy model of social interactions in which individuals sort into peer groups based on comparative advantage. Two key results emerge: First, when comparative advantage is the guiding principle of peer group organization, the effect of moving a student into an environment with higher-achieving peers depends on where in the ability…
Descriptors: Group Behavior, Peer Groups, Peer Influence, Test Construction