Parental Educational Styles with Externalities

• Authors: Antonio Cabrales and Esther Hauk
• BSE Working Paper: 1546 | January 26
• Keywords: multiple equilibria , Externalities , Coordination , peer effects , school choice , segregation , local interaction , collaborative learning , parental educational styles , education policy
• JEL codes: I21, D62, C72, I28

This paper develops a model to understand the conditions under which groups within a society choose between a collaborative and an individualist approach to education. A key feature of the model is the presence of externalities, which can lead to multiple equilibria. This framework helps explain the persistence of diverse local educational cultures, even within relatively homogeneous countries. These features yield important and subtle insights for public policy. Policymakers may need to focus either on shifting beliefs or enhancing the abilities of parents and teachers. We also analyze the incentives driving segregation in education and explore potential policy responses.