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Inefficient School Choice in a Long-Run Urban Equilibrium

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  • Ulrich Kamecke

Abstract

We model centralized school matching as a second stage of a simple Tiebout-model and show that the two most discussed mechanisms, the deferred acceptance and the Boston algorithm, both produce inefficient outcomes and that the Boston mechanism is more efficient than deferred acceptance. This advantage vanishes if the participants get to know their priorities before they submit their preferences. Moreover, the mechanism creates artificial social segregation at the cost of the disadvantaged if the school priorities are based on ex ante known (social) differences of the applicants.

Suggested Citation

  • Ulrich Kamecke, 2014. "Inefficient School Choice in a Long-Run Urban Equilibrium," CESifo Working Paper Series 4969, CESifo.
    • Handle: RePEc:ces:ceswps:_4969
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    References listed on IDEAS

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    More about this item

    Keywords

    school choice; deffered acceptance; Boston mechanism; Tiebout-hypothesis; social seggregation;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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