Gaming the Boston School Choice Mechanism in Beijing
AbstractThe Boston mechanism is criticized for its poor incentive and welfare performance compared to the Gale-Shapley deferred-acceptance mechanism (DA). Using school choice data from Beijing, I investigate parents’ behavior under the Boston mechanism, taking into account parents’ possible mistakes when they strategize. Evidence shows that parents are overcautious as they play "safe" strategies too often. Wealthier/more educated parents are less overcautious and perform slightly better because they have better outside options while not being any more adept at strategizing. Parents who are always truth-telling experience a utility gain in switching from the Boston mechanism to the DA, equivalent to a 7.1% decrease in the distance to a school. Among them, 44.2% are better off under the DA, while 35.5% are worse off.
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Bibliographic InfoPaper provided by Toulouse School of Economics (TSE) in its series TSE Working Papers with number 12-345.
Date of creation: May 2012
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-11-17 (All new papers)
- NEP-CDM-2012-11-17 (Collective Decision-Making)
- NEP-LAB-2012-11-17 (Labour Economics)
- NEP-URE-2012-11-17 (Urban & Real Estate Economics)
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