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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. Atila Abdulkadiroğlu & Yeon-Koo Che & Yosuke Yasuda, 2010. "Expanding “Choice” in School Choice," Levine's Working Paper Archive 661465000000000062, David K. Levine.
  2. Robert Day & Paul Milgrom, 2008. "Core-selecting package auctions," International Journal of Game Theory, Springer, Springer, vol. 36(3), pages 393-407, March.
  3. Caterina Calsamiglia & Guillaume Haeringer & Flip Klijn, 2008. "Constrained School Choice: An Experimental Study," Working Papers 365, Barcelona Graduate School of Economics.
  4. 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.
  5. Alvin E. Roth, 2007. "What Have We Learned From Market Design?," NBER Working Papers 13530, National Bureau of Economic Research, Inc.
  6. Atila Abdulkadiroğlu & Parag A. Pathak & Alvin E. Roth, 2005. "The New York City High School Match," American Economic Review, American Economic Association, American Economic Association, vol. 95(2), pages 364-367, May.
  7. Fuhito Kojima & Parag A. Pathak, 2009. "Incentives and Stability in Large Two-Sided Matching Markets," American Economic Review, American Economic Association, American Economic Association, vol. 99(3), pages 608-27, June.
  8. Alvin E. Roth & Tayfun Sonmez & M. Utku Unver, 2003. "Kidney Exchange," NBER Working Papers 10002, National Bureau of Economic Research, Inc.
  9. Kesten, Onur & Ãœnver, M. Utku, 0. "A theory of school choice lotteries," Theoretical Economics, Econometric Society, Econometric Society.
  10. 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.
  11. Atila Abdulkadiroglu & Tayfun Smez, 2003. "School Choice: A Mechanism Design Approach," Discussion Papers, Columbia University, Department of Economics 0203-18, Columbia University, Department of Economics.
  12. Alvin E. Roth & Tayfun Sonmez & M. Utku Unver, 2004. "Pairwise Kidney Exchange," Levine's Bibliography 122247000000000350, UCLA Department of Economics.
  13. Roth, Alvin E. & Sotomayor, Marilda, 1992. "Two-sided matching," Handbook of Game Theory with Economic Applications, Elsevier, in: R.J. Aumann & S. Hart (ed.), Handbook of Game Theory with Economic Applications, edition 1, volume 1, chapter 16, pages 485-541 Elsevier.
  14. Atila AbdulkadiroÄŸlu, 2005. "College admissions with affirmative action," International Journal of Game Theory, Springer, Springer, vol. 33(4), pages 535-549, November.
  15. 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.
  16. Parag A. Pathak & Jay Sethuraman, 2010. "Lotteries in Student Assignment: An Equivalence Result," NBER Working Papers 16140, National Bureau of Economic Research, Inc.
  17. Aytek Erdil & Haluk Ergin, 2008. "What's the Matter with Tie-Breaking? Improving Efficiency in School Choice," American Economic Review, American Economic Association, American Economic Association, vol. 98(3), pages 669-89, June.
  18. EHLERS, Lars, 2006. "Respecting Priorities when Assigning Students to Schools," Cahiers de recherche, Centre interuniversitaire de recherche en économie quantitative, CIREQ 04-2006, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
  19. Sonmez, Tayfun, 1997. "Manipulation via Capacities in Two-Sided Matching Markets," Journal of Economic Theory, Elsevier, vol. 77(1), pages 197-204, November.
  20. Guillaume Haeringer & Flip Klijn, 2008. "Constrained School Choice," Working Papers 294, Barcelona Graduate School of Economics.
  21. 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, Boston College Department of Economics 784, Boston College Department of Economics.
  22. Alvin E. Roth, 2002. "The Economist as Engineer: Game Theory, Experimentation, and Computation as Tools for Design Economics," Econometrica, Econometric Society, Econometric Society, vol. 70(4), pages 1341-1378, July.
  23. 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.
  24. 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, American Economic Association, vol. 89(4), pages 748-780, September.
  25. Roth, Alvin E, 1991. "A Natural Experiment in the Organization of Entry-Level Labor Markets: Regional Markets for New Physicians and Surgeons in the United Kingdom," American Economic Review, American Economic Association, American Economic Association, vol. 81(3), pages 415-40, June.
  26. Balinski, Michel & Sonmez, Tayfun, 1999. "A Tale of Two Mechanisms: Student Placement," Journal of Economic Theory, Elsevier, vol. 84(1), pages 73-94, January.
  27. Atila Abdulkadiroğlu & Parag A. Pathak & Alvin E. Roth & Tayfun S�nmez, 2005. "The Boston Public School Match," American Economic Review, American Economic Association, American Economic Association, vol. 95(2), pages 368-371, May.
  28. 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, University of Chicago Press, vol. 92(6), pages 991-1016, December.
  29. Atila Abdulkadiroglu & Yeon-Koo Che & Yosuke Yasuda, 2011. "Resolving Conflicting Preferences in School Choice: The "Boston Mechanism" Reconsidered," American Economic Review, American Economic Association, American Economic Association, vol. 101(1), pages 399-410, February.
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