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The Day Care Assignment: A Dynamic Matching Problem

Author

Listed:
  • John Kennes Jr.
  • Daniel Monte Jr.
  • Norovsambuu Tumennasan Jr.

Abstract

We study the problem of centralized allocation of children to public daycare centers, illustrated by the case of Denmark. Our framework applies to problems of dynamic matching in which there is entry and exit of agents over time; for example, the school choice problem once student mobility is taken into account. We show that there does not exist any mechanism that is both stable and strategy-proof. We also show that the well-known Top Trading Cycles mechanism is neither Pareto efficient nor strategy-proof. Finally, a mechanism in which parents sequentially choose menus of schools is both strategy-proof and Pareto efficient.

Suggested Citation

  • John Kennes Jr. & Daniel Monte Jr. & Norovsambuu Tumennasan Jr., 2014. "The Day Care Assignment: A Dynamic Matching Problem," American Economic Journal: Microeconomics, American Economic Association, vol. 6(4), pages 362-406, November.
  • Handle: RePEc:aea:aejmic:v:6:y:2014:i:4:p:362-406
    Note: DOI: 10.1257/mic.6.4.362
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    References listed on IDEAS

    as
    1. Pablo Guillen & Onur Kesten, 2012. "Matching Markets With Mixed Ownership: The Case For A Real‐Life Assignment Mechanism," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 53(3), pages 1027-1046, August.
    2. Lars Ehlers & Bettina Klaus, 2003. "Coalitional strategy-proof and resource-monotonic solutions for multiple assignment problems," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 21(2), pages 265-280, October.
    3. Damiano, Ettore & Lam, Ricky, 2005. "Stability in dynamic matching markets," Games and Economic Behavior, Elsevier, vol. 52(1), pages 34-53, July.
    4. Raj Chetty & John N. Friedman & Nathaniel Hilger & Emmanuel Saez & Diane Whitmore Schanzenbach & Danny Yagan, 2011. "How Does Your Kindergarten Classroom Affect Your Earnings? Evidence from Project Star," The Quarterly Journal of Economics, Oxford University Press, vol. 126(4), pages 1593-1660.
    5. Eric Budish & Estelle Cantillon, 2012. "The Multi-unit Assignment Problem: Theory and Evidence from Course Allocation at Harvard," American Economic Review, American Economic Association, vol. 102(5), pages 2237-2271, August.
    6. Morimitsu Kurino, 2014. "House Allocation with Overlapping Generations," American Economic Journal: Microeconomics, American Economic Association, vol. 6(1), pages 258-289, February.
    7. Parag A. Pathak, 2011. "The Mechanism Design Approach to Student Assignment," Annual Review of Economics, Annual Reviews, vol. 3(1), pages 513-536, September.
    8. Sasaki, Hiroo & Toda, Manabu, 1996. "Two-Sided Matching Problems with Externalities," Journal of Economic Theory, Elsevier, vol. 70(1), pages 93-108, July.
    9. Balinski, Michel & Sonmez, Tayfun, 1999. "A Tale of Two Mechanisms: Student Placement," Journal of Economic Theory, Elsevier, vol. 84(1), pages 73-94, January.
    10. John Kennes & Daniel Monte & Norovsambuu Tumennasan, 2011. "The Daycare Assignment Problem," Economics Working Papers 2011-05, Department of Economics and Business Economics, Aarhus University.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Monte, Daniel & Tumennasan, Norovsambuu, 2015. "Centralized allocation in multiple markets," Journal of Mathematical Economics, Elsevier, vol. 61(C), pages 74-85.
    2. Dimakopoulos, Philipp D. & Heller, C.-Philipp, 2015. "Matching with Waiting Times: The German Entry-Level Labour Market for Lawyers," Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113153, Verein für Socialpolitik / German Economic Association.
    3. Philipp D. Dimakopoulos & Christian-Philipp Heller, 2014. "Matching with Waiting Times: The German Entry-Level Labour Market for Lawyers," Working Papers 2014005, Berlin Doctoral Program in Economics and Management Science (BDPEMS).
    4. John Kennes & Daniel Monte & Norovsambuu Tumennasan, 2015. "Dynamic Matching Markets and the Deferred Acceptance Mechanism," Economics Working Papers 2015-23, Department of Economics and Business Economics, Aarhus University.
    5. Francis Bloch & David Cantala, 2017. "Dynamic Assignment of Objects to Queuing Agents," American Economic Journal: Microeconomics, American Economic Association, vol. 9(1), pages 88-122, February.
    6. Anno, Hidekazu & Kurino, Morimitsu, 2016. "On the operation of multiple matching markets," Games and Economic Behavior, Elsevier, vol. 100(C), pages 166-185.
    7. Andersson, Tommy & Ehlers, Lars & Martinello, Alessandro, 2018. "Dynamic Refugee Matching," Working Papers 2018:7, Lund University, Department of Economics.
    8. repec:jmi:articl:jmi-v2i1a3 is not listed on IDEAS
    9. Francis Bloch & David Cantala, 2014. "Dynamic Allocation of Objects to Queuing Agents: The Discrete Model," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-01109667, HAL.
    10. Lawrence M. Ausubel & Thayer Morrill, 2014. "Sequential Kidney Exchange," American Economic Journal: Microeconomics, American Economic Association, vol. 6(3), pages 265-285, August.
    11. Carlsson, Sissa & Thomsen, Stephan L., 2015. "Improving the Allocation of Spots in Child Care Facilities for Toddlers in Germany: A Mechanism Design Approach," IZA Discussion Papers 8976, Institute for the Study of Labor (IZA).
    12. Morimitsu Kurino, 2014. "House Allocation with Overlapping Generations," American Economic Journal: Microeconomics, American Economic Association, vol. 6(1), pages 258-289, February.
    13. Fragiadakis, Daniel & Troyan, Peter, 2017. "Improving matching under hard distributional constraints," Theoretical Economics, Econometric Society, vol. 12(2), May.
    14. Dimakopoulos, Philipp D. & Heller, C.-Philipp, 2018. "Matching with Waiting Times: The German Entry-Level Labor Market for Lawyers," Rationality and Competition Discussion Paper Series 68, CRC TRR 190 Rationality and Competition.
    15. Kotowski, Maciej H., 2015. "A Note on Stability in One-to-One, Multi-period Matching Markets," Working Paper Series rwp15-042, Harvard University, John F. Kennedy School of Government.

    More about this item

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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