On-Campus Housing: Theory vs. Experiment
AbstractMany universities in the US offer on-campus housing opportunities to incoming as well as already enrolled students. Recent research has theoretically as well as experimentally shown that the most common student assignment mechanism used in the US is subject to serious efficiency losses. In this paper we first show that a particular mechanism which is currently in use at the MIT for about two decades is in fact equivalent to a natural adaptation of the well-known Gale-Shapley mechanism of two-sided matching theory. Motivated from the increasing popularity and success of the Gale-Shapley mechanism in a number of markets, we next experimentally compare the performances of the MIT mechanism with that of the leading theory mechanism Top Trading Cycles. Contrary to theory, the MIT mechanism performs better in terms of efficiency and participation rates, while we observe no significant difference between the two mechanisms in terms of truth-telling rates .
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University of Sydney, School of Economics in its series Working Papers with number 2008-02.
Date of creation: Jan 2008
Date of revision:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Chen, Yan & Sonmez, Tayfun, 2004. "An experimental study of house allocation mechanisms," Economics Letters, Elsevier, vol. 83(1), pages 137-140, April.
- Chen, Yan & Sonmez, Tayfun, 2006.
"School choice: an experimental study,"
Journal of Economic Theory,
Elsevier, vol. 127(1), pages 202-231, March.
- Abdulkadiroglu, Atila & Sonmez, Tayfun, 1999. "House Allocation with Existing Tenants," Journal of Economic Theory, Elsevier, vol. 88(2), pages 233-260, October.
- Haluk I. Ergin, 2002. "Efficient Resource Allocation on the Basis of Priorities," Econometrica, Econometric Society, vol. 70(6), pages 2489-2497, November.
- Balinski, Michel & Sonmez, Tayfun, 1999. "A Tale of Two Mechanisms: Student Placement," Journal of Economic Theory, Elsevier, vol. 84(1), pages 73-94, January.
- Atila Abdulkadiroglu & Tayfun Smez, 2003.
"School Choice: A Mechanism Design Approach,"
0203-18, Columbia University, Department of Economics.
- Yan Chen & Tayfun S�nmez, 2002. "Improving Efficiency of On-Campus Housing: An Experimental Study," American Economic Review, American Economic Association, vol. 92(5), pages 1669-1686, December.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Vanessa Holcombe).
If references are entirely missing, you can add them using this form.