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School Choice with Consent

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  • Onur Kesten

    (Carnegie Mellon University Tepper School of Business.)

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    Abstract

    An increasingly popular practice for student assignment to public schools in the United States is the use of school choice systems. The celebrated Gale-Shapley student-optimal stable mechanism (SOSM) has recently replaced two deficient student assignment mechanisms that were in use in New York City and Boston. We provide theoretical evidence that the SOSM outcome may produce large welfare losses. Then we propose an efficiency-adjusted deferred acceptance mechanism (EADAM) that allows a student to consent to waive a certain priority that has no effect on his or her assignment. Under EADAM, consenting students cause themselves no harm, but may help many others benefit as a consequence. We show that EADAM can recover any welfare losses due to SOSM while also preserving immunity against strategic behavior in a particular way. It is also possible to use EADAM to eliminate welfare losses due to randomly breaking ties in student priorities. (c) 2010 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology..

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    File URL: http://www.mitpressjournals.org/doi/pdfplus/10.1162/qjec.2010.125.3.1297
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    Bibliographic Info

    Article provided by MIT Press in its journal Quarterly Journal of Economics.

    Volume (Year): 125 (2010)
    Issue (Month): 3 (August)
    Pages: 1297-1348

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    Handle: RePEc:tpr:qjecon:v:125:y:2010:i:3:p:1297-1348

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    Web page: http://mitpress.mit.edu/journals/

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    Cited by:
    1. Alcalde, Jose & Subiza, Begoña, 2011. "On Integration Policies and Schooling," MPRA Paper 29145, University Library of Munich, Germany.
    2. Alcalde, Jose & Romero-Medina, Antonio, 2014. "Strategy-Proof Fair School Placement," QM&ET Working Papers 14-1, Universidad de Alicante, Departamento de Métodos Cuantitativos y Teoría Económica.
    3. Franz Diebold & Haris Aziz & Martin Bichler & Florian Matthes & Alexander Schneider, 2014. "Course Allocation via Stable Matching," Business & Information Systems Engineering, Springer, vol. 6(2), pages 97-110, April.
    4. Alcalde, Jose & Romero-Medina, Antonio, 2011. "Re-Reforming the Bostonian System: A Novel Approach to the Schooling Problem," MPRA Paper 28206, University Library of Munich, Germany.
    5. Onur Kesten, 2012. "On two kinds of manipulation for school choice problems," Economic Theory, Springer, vol. 51(3), pages 677-693, November.
    6. Boudreau, James W. & Knoblauch, Vicki, 2014. "What price stability? Social welfare in matching markets," Mathematical Social Sciences, Elsevier, vol. 67(C), pages 27-33.
    7. Tayfun Sönmez & Tobias B. Switzer, 2011. "Matching with (Branch-of-Choice) Contracts at United States Military Academy," Boston College Working Papers in Economics 782, Boston College Department of Economics.
    8. Onur Kesten & M. Utku Ünver, 2010. "A Theory of School-Choice Lotteries," Boston College Working Papers in Economics 737, Boston College Department of Economics, revised 29 Jun 2012.
    9. Thayer Morrill, 2013. "An alternative characterization of top trading cycles," Economic Theory, Springer, vol. 54(1), pages 181-197, September.
    10. Alcalde, José & Subiza, Begoña, 2012. "Affirmative Action and School Choice," QM&ET Working Papers 12-3, Universidad de Alicante, Departamento de Métodos Cuantitativos y Teoría Económica.
    11. Tayfun S�nmez, 2013. "Bidding for Army Career Specialties: Improving the ROTC Branching Mechanism," Journal of Political Economy, University of Chicago Press, vol. 121(1), pages 186 - 219.
    12. James Boudreau & Vicki Knoblauch, 2013. "Preferences and the price of stability in matching markets," Theory and Decision, Springer, vol. 74(4), pages 565-589, April.
    13. Alcalde, Jose & Silva-Reus, José Ángel, 2013. "Allocating via Priorities," QM&ET Working Papers 13-3, Universidad de Alicante, Departamento de Métodos Cuantitativos y Teoría Económica.
    14. Fuhito Kojima & M. Ünver, 2014. "The “Boston” school-choice mechanism: an axiomatic approach," Economic Theory, Springer, vol. 55(3), pages 515-544, April.

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