INFORMATION SYSTEM QUALITY : AN EXAMINATION OF SERVICE-BASED MODELS AND ALTERNATIVES If both peer group and school effectiveness are important to parents, then, the Tiebout mechanism rewards effective administrators only when there are many districts. Model (3) suggests that in this case the test score gap between high- and low-income schools will tend to be larger in markets with a great deal of interdistrict competition than in those with less Tiebout choice. I test for this in the empirical analysis below
