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Correlation Neglect in Student-to-School Matching

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Listed:
  • Alex Rees-Jones
  • Ran Shorrer
  • Chloe J. Tergiman

Abstract

We present results from experiments containing incentivized school-choice scenarios. In these scenarios, we vary whether schools’ assessments of students are based on a common priority (inducing correlation in admissions decisions) or are based on independent assessments (eliminating correlation in admissions decisions). The quality of students’ application strategies declines in the presence of correlated admissions: application strategies become substantially more aggressive and fail to include attractive “safety” options. We provide a battery of tests suggesting that this phenomenon is at least partially driven by correlation neglect, and we discuss implications for the design and deployment of student-to-school matching mechanisms.

Suggested Citation

  • Alex Rees-Jones & Ran Shorrer & Chloe J. Tergiman, 2020. "Correlation Neglect in Student-to-School Matching," NBER Working Papers 26734, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:26734
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Felipe Arteaga & Adam J Kapor & Christopher A Neilson & Seth D Zimmerman, 2022. "Smart Matching Platforms and Heterogeneous Beliefs in Centralized School Choice," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 137(3), pages 1791-1848.
    2. Parag A. Pathak & Alex Rees-Jones & Tayfun Sönmez, 2023. "Reversing Reserves," Management Science, INFORMS, vol. 69(11), pages 6940-6953, November.
    3. Bnaya Dreyfuss & Ori Heffetz & Matthew Rabin, 2019. "Expectations-Based Loss Aversion May Help Explain Seemingly Dominated Choices in Strategy-Proof Mechanisms," NBER Working Papers 26394, National Bureau of Economic Research, Inc.
    4. Pauline Vorjohann, 2023. "Reference-dependent choice bracketing," Discussion Papers 2309, University of Exeter, Department of Economics.
    5. 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).
    6. 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.
    7. Christopher Neilson & Felipe Arteaga & Adam Kapor & Seth Zimmerman, 2021. "Smart Matching Platforms and Heterogeneous Beliefs in Centralized School ChoiceSmart Matching Platforms and Heterogeneous Beliefs in Centralized School Choice," Working Papers 650, Princeton University, Department of Economics, Industrial Relations Section..
    8. Bnaya Dreyfuss & Ofer Glicksohn & Ori Heffetz & Assaf Romm, 2022. "Deferred Acceptance with News Utility," NBER Working Papers 30635, National Bureau of Economic Research, Inc.
    9. Zhang, Jun, 2021. "Level-k reasoning in school choice," Games and Economic Behavior, Elsevier, vol. 128(C), pages 1-17.
    10. Klümper, Andreas & Kräkel, Matthias, 2020. "Correlation neglect, incentives, and welfare," Economics Letters, Elsevier, vol. 192(C).
    11. Mu Zhang, 2021. "A Theory of Choice Bracketing under Risk," Papers 2102.07286, arXiv.org, revised Aug 2021.
    12. Niederle, Muriel & Vespa, Emanuel, 2023. "Cognitive Limitations: Failures of Contingent Thinking," University of California at San Diego, Economics Working Paper Series qt5q14p1np, Department of Economics, UC San Diego.

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    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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