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Strategy-Proofness versus Efficiency in Matching with Indifferences: Redesigning the NYC High School Match

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  • Atila Abdulkadiroglu
  • Parag A. Pathak
  • Alvin E. Roth

Abstract

The design of the New York City (NYC) high school match involved trade-offs among efficiency, stability, and strategy-proofness that raise new theoretical questions. We analyze a model with indifferences -- ties -- in school preferences. Simulations with field data and the theory favor breaking indifferences the same way at every school -- single tiebreaking -- in a student-proposing deferred acceptance mechanism. Any inefficiency associated with a realized tiebreaking cannot be removed without harming student incentives. Finally, we empirically document the extent of potential efficiency loss associated with strategy-proofness and stability, and direct attention to some open questions. (JEL C78, D82, I21)

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Bibliographic Info

Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 99 (2009)
Issue (Month): 5 (December)
Pages: 1954-78

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Handle: RePEc:aea:aecrev:v:99:y:2009:i:5:p:1954-78

Note: DOI: 10.1257/aer.99.5.1954
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  1. Caterina Calsamiglia & Guillaume Haeringer & Flip Klijn, 2008. "Constrained School Choice: An Experimental Study," UFAE and IAE Working Papers 757.08, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  2. Elliott Peranson & Alvin E. Roth, 1999. "The Redesign of the Matching Market for American Physicians: Some Engineering Aspects of Economic Design," American Economic Review, American Economic Association, vol. 89(4), pages 748-780, September.
  3. Atila Abdulkadiroglu & Yeon-Koo Che & Yosuke Yasuda, 2011. "Resolving Conflicting Preferences in School Choice: The "Boston Mechanism" Reconsidered," American Economic Review, American Economic Association, vol. 101(1), pages 399-410, February.
  4. Haeringer, Guillaume & Klijn, Flip, 2009. "Constrained school choice," Journal of Economic Theory, Elsevier, vol. 144(5), pages 1921-1947, September.
  5. Roth, Alvin E., 1985. "The college admissions problem is not equivalent to the marriage problem," Journal of Economic Theory, Elsevier, vol. 36(2), pages 277-288, August.
  6. Atila Abdulkadiroglu & Yeon-Koo Che & Yosuke Yasuda, 2008. "Expanding "Choice" in School Choice," Discussion Papers 0809-09, Columbia University, Department of Economics.
  7. Fuhito Kojima & Parag A. Pathak, 2009. "Incentives and Stability in Large Two-Sided Matching Markets," American Economic Review, American Economic Association, vol. 99(3), pages 608-27, June.
  8. Kesten, Onur & Ünver, M. Utku, 0. "A theory of school choice lotteries," Theoretical Economics, Econometric Society.
  9. Roth, Alvin E. & Sotomayor, Marilda, 1992. "Two-sided matching," Handbook of Game Theory with Economic Applications, in: R.J. Aumann & S. Hart (ed.), Handbook of Game Theory with Economic Applications, edition 1, volume 1, chapter 16, pages 485-541 Elsevier.
  10. Alvin E. Roth, 2007. "What Have We Learned From Market Design?," NBER Working Papers 13530, National Bureau of Economic Research, Inc.
  11. Atila Abdulkadiroglu & Parag A. Pathak & Alvin E. Roth & Tayfun Sönmez, 2006. "Changing the Boston School Choice Mechanism," Levine's Bibliography 122247000000001022, UCLA Department of Economics.
  12. Sonmez, Tayfun, 1999. "Can Pre-arranged Matches Be Avoided in Two-Sided Matching Markets?," Journal of Economic Theory, Elsevier, vol. 86(1), pages 148-156, May.
  13. Balinski, Michel & Sonmez, Tayfun, 1999. "A Tale of Two Mechanisms: Student Placement," Journal of Economic Theory, Elsevier, vol. 84(1), pages 73-94, January.
  14. Aytek Erdil & Haluk Ergin, 2008. "What's the Matter with Tie-Breaking? Improving Efficiency in School Choice," American Economic Review, American Economic Association, vol. 98(3), pages 669-89, June.
  15. Clayton Featherstone & Muriel Niederle, 2008. "Ex Ante Efficiency in School Choice Mechanisms: An Experimental Investigation," NBER Working Papers 14618, National Bureau of Economic Research, Inc.
  16. EHLERS, Lars, 2006. "Respecting Priorities when Assigning Students to Schools," Cahiers de recherche 04-2006, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
  17. Alvin E. Roth & Tayfun Sönmez & M. Utku Ünver, 2004. "Pairwise Kidney Exchange," Game Theory and Information 0408001, EconWPA, revised 16 Feb 2005.
  18. Alvin E. Roth & Tayfun Sonmez & M. Utku Unver, 2003. "Kidney Exchange," NBER Working Papers 10002, National Bureau of Economic Research, Inc.
  19. Atila Abdulkadiroğlu & Parag A. Pathak & Alvin E. Roth, 2005. "The New York City High School Match," American Economic Review, American Economic Association, vol. 95(2), pages 364-367, May.
  20. Alvin E. Roth, 2002. "The Economist as Engineer: Game Theory, Experimentation, and Computation as Tools for Design Economics," Econometrica, Econometric Society, vol. 70(4), pages 1341-1378, July.
  21. Atila Abdulkadiroglu & Tayfun Smez, 2003. "School Choice: A Mechanism Design Approach," Discussion Papers 0203-18, Columbia University, Department of Economics.
  22. Atila Abdulkadiroğlu & Parag A. Pathak & Alvin E. Roth & Tayfun S�nmez, 2005. "The Boston Public School Match," American Economic Review, American Economic Association, vol. 95(2), pages 368-371, May.
  23. Parag A. Pathak & Jay Sethuraman, 2010. "Lotteries in Student Assignment: An Equivalence Result," NBER Working Papers 16140, National Bureau of Economic Research, Inc.
  24. Robert Day & Paul Milgrom, 2008. "Core-selecting package auctions," International Journal of Game Theory, Springer, vol. 36(3), pages 393-407, March.
  25. Parag A. Pathak & Tayfun Sönmez, 2011. "School Admissions Reform in Chicago and England: Comparing Mechanisms by their Vulnerability to Manipulation," Boston College Working Papers in Economics 784, Boston College Department of Economics.
  26. Roth, Alvin E, 1984. "The Evolution of the Labor Market for Medical Interns and Residents: A Case Study in Game Theory," Journal of Political Economy, University of Chicago Press, vol. 92(6), pages 991-1016, December.
  27. Sonmez, Tayfun, 1997. "Manipulation via Capacities in Two-Sided Matching Markets," Journal of Economic Theory, Elsevier, vol. 77(1), pages 197-204, November.
  28. Atila Abdulkadiroğlu, 2005. "College admissions with affirmative action," International Journal of Game Theory, Springer, vol. 33(4), pages 535-549, November.
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