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Telling the Truth May Not Pay Off

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  • Sebastian Braun
  • Nadja Dwenger
  • Dorothea Kübler

Abstract

We investigate the matching algorithm used by the German central clearinghouse for university admissions (ZVS) in medicine and related subjects. This mechanism consists of three procedures based on final grades from school ("Abiturbestenverfahren", "Auswahlverfahren der Hochschulen") and on waiting time ("Wartezeitverfahren"). While these procedures differ in the criteria applied for admission they all make use of priority matching. In priority matching schemes, it is not a dominant strategy for students to submit their true preferences. Thus, strategic behaviour is expected. Using the full data set of applicants, we are able to detect some amount of strategic behaviour which can lead to inefficient matching. Alternative ways to organize the market are briefly discussed.

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File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.78307.de/dp759.pdf
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Bibliographic Info

Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 759.

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Length: 28 p.
Date of creation: 2007
Date of revision:
Handle: RePEc:diw:diwwpp:dp759

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Keywords: Matching; university admissions; strategic behaviour;

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References

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  1. 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.
  2. 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.
  3. Alcalde, J. & Barberà, S., 1992. "Top Dominance and the Possibility of Strategy-Proof Stable Solutions to Matching Problems," UFAE and IAE Working Papers 196.92, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  4. Chen, Yan & Sonmez, Tayfun, 2006. "School choice: an experimental study," Journal of Economic Theory, Elsevier, vol. 127(1), pages 202-231, March.
  5. Muriel Niederle & Alvin E. Roth, 2007. "The Effects of a Centralized Clearinghouse on Job Placement, Wages, and Hiring Practices," NBER Working Papers 13529, National Bureau of Economic Research, Inc.
  6. Balinski, Michel & Sonmez, Tayfun, 1999. "A Tale of Two Mechanisms: Student Placement," Journal of Economic Theory, Elsevier, vol. 84(1), pages 73-94, January.
  7. Haluk Ergin & Tayfun Sönmez, 2005. "Games of School Choice under the Boston Mechanism," Boston College Working Papers in Economics 619, Boston College Department of Economics.
  8. Atila Abdulkadiroglu & Parag A. Pathak & Alvin E. Roth, 2009. "Strategy-Proofness versus Efficiency in Matching with Indifferences: Redesigning the NYC High School Match," American Economic Review, American Economic Association, vol. 99(5), pages 1954-78, December.
  9. Pathak, Parag A. & Abdulkadiroglu, Atila & Roth, Alvin, 2005. "The New York City High School Match," Scholarly Articles 2562765, Harvard University Department of Economics.
  10. 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.
  11. 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, vol. 81(3), pages 415-40, June.
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Citations

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Cited by:
  1. László Á. Kóczy, 2009. "Központi felvételi rendszerek: Taktikázás és stabilitás," Working Paper Series 0901, Óbuda University, Keleti Faculty of Business and Management.
  2. Braun, Sebastian & Dwenger, Nadja & Kübler, Dorothea & Westkamp, Alexander, 2012. "Implementing quotas in university admissions: An experimental analysis," Discussion Papers, Research Unit: Market Behavior SP II 2012-201, Social Science Research Center Berlin (WZB).
  3. He, Yinghua, 2012. "Gaming the Boston School Choice Mechanism in Beijing," TSE Working Papers 12-345, Toulouse School of Economics (TSE).
  4. 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.
  5. Mira Fischer & Patrick Kampkoetter, 2014. "Striving for Excellence: University Competition, Quality Perceptions, and Ability Sorting," Cologne Graduate School Working Paper Series 05-01, Cologne Graduate School in Management, Economics and Social Sciences.
  6. Kóczy Á., László, 2010. "A magyarországi felvételi rendszerek sajátosságai
    [Specific features of Hungarys system of school and university admissions]
    ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(2), pages 142-164.
  7. Horstschräer, Julia, 2012. "Decentralizing university admission: Evidence from a natural experiment," ZEW Discussion Papers 12-076, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  8. Dwenger, Nadja & Kübler, Dorothea & Weizsäcker, Georg, 2013. "Preference for randomization: Empirical and experimental evidence," Discussion Papers, Research Unit: Market Behavior SP II 2013-201, Social Science Research Center Berlin (WZB).
  9. Peter Biro & Sofya Kiselgof, 2013. "College admissions with stable score-limits," IEHAS Discussion Papers 1306, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.

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