Luporini, Lisa; Grazzini, Annalisa; Petretto, Alessandro - 2011
students as a sequential noncooperative game. We show that different types of equilibrium may arise, depending on the mix of … research and teaching supplied by each university, and the mix of low- and high-ability students attending each university. The … most efficient equilibrium results in the creation of an élite institution attended only by high-ability students who enjoy …