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Understanding Preference Formation In A Matching Market

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  • Ricardo Mora

    ()

  • Antonio Romero-Medina

    ()

Abstract

We analyze the role of formal and informal information gathering in students' preference formation. We analyzed this role in the college admission process using Spanish individual data. We introduce students' risk aversion and information costs on the standard college admission problem. Then, we model the students' list formation as a two-stage procedure. In first stage, students must decide whether they gather information or not about a college. In the second stage, they give their preferred list to the matching office. The observed changes in preferences suggest that information gathering is important in the last two months of the process and that students with less ex-ante information are more affected by these changes.

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File URL: http://docubib.uc3m.es/WORKINGPAPERS/WE/we015919.pdf
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Bibliographic Info

Paper provided by Universidad Carlos III, Departamento de Economía in its series Economics Working Papers with number we015919.

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Date of creation: Dec 2001
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Handle: RePEc:cte:werepe:we015919

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  1. 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.
  2. Alvin E. Roth & Uriel G. Rothblum, 1999. "Truncation Strategies in Matching Markets--In Search of Advice for Participants," Econometrica, Econometric Society, vol. 67(1), pages 21-44, January.
  3. Roth, Alvin E & Vande Vate, John H, 1991. "Incentives in Two-Sided Matching with Random Stable Mechanisms," Economic Theory, Springer, vol. 1(1), pages 31-44, January.
  4. Antonio Romero-Medina, 1998. "Implementation of stable solutions in a restricted matching market," Review of Economic Design, Springer, vol. 3(2), pages 137-147.
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