Recently, several school districts in the US have adopted or consider adopting the Student-Optimal Stable mechanism or the Top Trading Cycles mechanism to assign children to public schools. There is evidence that for school districts that employ (variants of) the so-called Boston mechanism the transition would lead to efficiency gains. The first two mechanisms are strategy-proof, but in practice student assignment procedures typically impede a student to submit a preference list that contains all his acceptable schools. We study the preference revelation game where students can only declare up to a fixed number of schools to be acceptable. We focus on the stability and efficiency of the Nash equilibrium outcomes. Our main results identify rather stringent necessary and sufficient conditions on the priorities to guarantee stability or efficiency of either of the two mechanisms. This stands in sharp contrast with the Boston mechanism which has been abandoned in many US school districts but nevertheless yields stable Nash equilibrium outcomes.
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Paper provided by Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC) in its series UFAE and IAE Working Papers with number
671.06.
Find related papers by JEL classification: C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy-Making and Implementation I20 - Health, Education, and Welfare - - Education - - - General
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Lars Ehlers & Bettina Klaus, 2002.
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[Downloadable!]
EHLERS, Lars & KLAUS, Bettina, 2003.
"Efficient Priority Rules,"
Cahiers de recherche
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[Downloadable!]
EHLERS, Lars & KLAUS, Bettina, 2005.
"Consistent House Allocation,"
Cahiers de recherche
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[Downloadable!]
Other versions:
Ehlers,Lars & Klaus,Bettina, 2005.
"Consistent House Allocation,"
Research Memoranda
007, Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization.
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