Inter Organizational information system use in supply chaizn : Toward an integration of competence based and transaction cost based views of the firm Importantly, one would expect the degree of local competition in public schooling (. the number of school districts in the local area among which parents can choose) to affect the magnitude of θ * whenever parents care both about peer groups and school effectiveness. The reasoning is simple: If there are only a small number of local districts and parents value the peer group, they may be stuck with a high- x /low-μ school, even in housing market equilibrium, by their.