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Experience Transmission: Truth-telling Adoption in Matching

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  • Min Zhu

    (GATE Lyon Saint-Étienne - Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne - ENS de Lyon - École normale supérieure de Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UJM - Université Jean Monnet - Saint-Étienne - CNRS - Centre National de la Recherche Scientifique)

Abstract

Boundedly rational people may engage in strategic behavior under the Deferred Acceptance mechanism, resulting in unstable outcome and reducing overall welfare. How to reduce strategic behavior is thus of importance for field implementation. I address this issue in a laboratory experiment by looking at whether experienced people can transmit what they have learned and promote truth-telling behavior. In this experiment, subjects repeatedly play the matching game induced by the Deferred Acceptance mechanism for a finite number of periods, and then offer advice about best strategies to their successors. Participants in succeeding sessions are either given advice from their predecessors or observe histories of previous sessions. I find that advice given by predecessors can help subjects coordinate on truth-telling behavior and the Pareto efficient stable outcome (but this effect is not statistically significant in correlated preference environment). On the contrary, observing histories has ambiguous effect on truth-telling adoption. This implies that policy makers can encourage real people to adopt truth-telling in the field by providing them with collections of good advice from people who have already participated in matching market.

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  • Min Zhu, 2015. "Experience Transmission: Truth-telling Adoption in Matching," Working Papers halshs-01176926, HAL.
    • Handle: RePEc:hal:wpaper:halshs-01176926
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01176926
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    Cited by:

    1. Klijn, Flip & Pais, Joana & Vorsatz, Marc, 2019. "Static versus dynamic deferred acceptance in school choice: Theory and experiment," Games and Economic Behavior, Elsevier, vol. 113(C), pages 147-163.
    2. Guillen, Pablo & Hakimov, Rustamdjan, 2018. "The effectiveness of top-down advice in strategy-proof mechanisms: A field experiment," European Economic Review, Elsevier, vol. 101(C), pages 505-511.
    3. Hakimov, Rustamdjan & Kübler, Dorothea, 2021. "Experiments on centralized school choice and college admissions: a survey," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 24(2), pages 434-488.
    4. Avinatan Hassidim & Assaf Romm & Ran I. Shorrer, 2021. "The Limits of Incentives in Economic Matching Procedures," Management Science, INFORMS, vol. 67(2), pages 951-963, February.
    5. Hakimov, Rustamdjan & Kübler, Dorothea, 2019. "Experiments On Matching Markets: A Survey," Rationality and Competition Discussion Paper Series 153, CRC TRR 190 Rationality and Competition.
    6. Guillén, Pablo & Hakimov, Rustamdjan, 2015. "How to get truthful reporting in matching markets: A field experiment," Discussion Papers, Research Unit: Market Behavior SP II 2015-208, WZB Berlin Social Science Center.
    7. Koutout, Kristine & Dustan, Andrew & Van der Linden, Martin & Wooders, Myrna, 2021. "Mechanism performance under strategy advice and sub-optimal play: A school choice experiment," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 94(C).

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    Keywords

    deferred acceptance mechanism; matching; experiment; experience transmission;
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