IDEAS home Printed from https://ideas.repec.org/a/eee/gamebe/v132y2022icp400-420.html

College admissions with tuition transfers

Author

Listed:
  • Afacan, Mustafa Oğuz

Abstract

We introduce a college admission with tuition transfers problem. In this novel formulation, students' payments are not necessarily equal to their respective tuition fees. However, the total requested tuition fees must be equal to the total payment burden on students. We introduce two mechanism classes — the first is efficient, and the second is stable and constrained efficient. Because of general incompatibilities, neither of them is strategy-proof. Next, under certain suppositions, we introduce a mechanism that is stable, strategy-proof, and Pareto dominates the deferred-acceptance mechanism, which is the best stable rule in the absence of tuition transfers. Lastly, we provide a welfare analysis to see how colleges are affected by tuition transfers.

Suggested Citation

  • Afacan, Mustafa Oğuz, 2022. "College admissions with tuition transfers," Games and Economic Behavior, Elsevier, vol. 132(C), pages 400-420.
    • Handle: RePEc:eee:gamebe:v:132:y:2022:i:c:p:400-420
    DOI: 10.1016/j.geb.2022.01.006
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0899825622000124
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.geb.2022.01.006?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Yan Chen & Ming Jiang & Onur Kesten, 2020. "An empirical evaluation of Chinese college admissions reforms through a natural experiment," Proceedings of the National Academy of Sciences, Proceedings of the National Academy of Sciences, vol. 117(50), pages 31696-31705, December.
    2. Abizada, Azar, 2016. "Stability and incentives for college admissions with budget constraints," Theoretical Economics, Econometric Society, vol. 11(2), May.
    3. Umut Mert Dur & M. Utku Ünver, 2019. "Two-Sided Matching via Balanced Exchange," Journal of Political Economy, University of Chicago Press, vol. 127(3), pages 1156-1177.
    4. Alcalde, Jose & Barbera, Salvador, 1994. "Top Dominance and the Possibility of Strategy-Proof Stable Solutions to Matching Problems," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 4(3), pages 417-435, May.
    5. Erdil, Aytek & Ergin, Haluk, 2017. "Two-sided matching with indifferences," Journal of Economic Theory, Elsevier, vol. 171(C), pages 268-292.
    6. Machado, Cecilia & Szerman, Christiane, 2016. "Centralized Admission and the Student-College Match," IZA Discussion Papers 10251, Institute of Labor Economics (IZA).
    7. Cao, Yuan, 2020. "Centralized assignment mechanisms and assortative matching: Evidence from Chinese universities," Journal of Economic Behavior & Organization, Elsevier, vol. 177(C), pages 255-276.
    8. Ehlers, Lars & Hafalir, Isa E. & Yenmez, M. Bumin & Yildirim, Muhammed A., 2014. "School choice with controlled choice constraints: Hard bounds versus soft bounds," Journal of Economic Theory, Elsevier, vol. 153(C), pages 648-683.
    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. Aytek Erdil & Haluk Ergin, 2008. "What's the Matter with Tie-Breaking? Improving Efficiency in School Choice," American Economic Review, American Economic Association, vol. 98(3), pages 669-689, June.
    11. Alvin E. Roth, 1982. "The Economics of Matching: Stability and Incentives," Mathematics of Operations Research, INFORMS, vol. 7(4), pages 617-628, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alva, Samson & Manjunath, Vikram, 2019. "Strategy-proof Pareto-improvement," Journal of Economic Theory, Elsevier, vol. 181(C), pages 121-142.
    2. Atila Abdulkadiroglu & Tommy Andersson, 2022. "School Choice," NBER Working Papers 29822, National Bureau of Economic Research, Inc.
    3. Eduardo Duque & Juan Pablo Torres-Martinez, 2022. "The Strong Effects of Weak Externalities on School Choice," Working Papers wp542, University of Chile, Department of Economics.
    4. Mustafa Oğuz Afacan & Umut Mert Dur, 2020. "Constrained stability in two-sided matching markets," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 55(3), pages 477-494, October.
    5. Lars Ehlers & Bettina Klaus, 2014. "Strategy-Proofness Makes the Difference: Deferred-Acceptance with Responsive Priorities," Mathematics of Operations Research, INFORMS, vol. 39(4), pages 949-966, November.
    6. Ayoade, Nickesha & Pápai, Szilvia, 2023. "School choice with preference rank classes," Games and Economic Behavior, Elsevier, vol. 137(C), pages 317-341.
    7. José Alcalde & Antonio Romero-Medina, 2017. "Fair student placement," Theory and Decision, Springer, vol. 83(2), pages 293-307, August.
    8. Ehlers, Lars & Hafalir, Isa E. & Yenmez, M. Bumin & Yildirim, Muhammed A., 2014. "School choice with controlled choice constraints: Hard bounds versus soft bounds," Journal of Economic Theory, Elsevier, vol. 153(C), pages 648-683.
    9. Salem, Sherif Gamal, 2012. "Stability, efficiency and monotonicity in two-sided matching," MPRA Paper 37215, University Library of Munich, Germany.
    10. Afacan, Mustafa Og̃uz & Dur, Umut Mert, 2017. "When preference misreporting is Harm[less]ful?," Journal of Mathematical Economics, Elsevier, vol. 72(C), pages 16-24.
    11. James Boudreau & Vicki Knoblauch, 2013. "Preferences and the price of stability in matching markets," Theory and Decision, Springer, vol. 74(4), pages 565-589, April.
    12. Ehlers, Lars & Klaus, Bettina, 2016. "Object allocation via deferred-acceptance: Strategy-proofness and comparative statics," Games and Economic Behavior, Elsevier, vol. 97(C), pages 128-146.
    13. Han, Xiang, 2024. "On the efficiency and fairness of deferred acceptance with single tie-breaking," Journal of Economic Theory, Elsevier, vol. 218(C).
    14. Tobias Reischmann & Thilo Klein & Sven Giegerich, 2021. "A deferred acceptance mechanism for decentralized, fast, and fair childcare assignment," The Journal of Mechanism and Institution Design, Society for the Promotion of Mechanism and Institution Design, University of York, vol. 6(1), pages 59-100, December.
    15. Lars Ehlers, 2008. "Truncation Strategies in Matching Markets," Mathematics of Operations Research, INFORMS, vol. 33(2), pages 327-335, May.
    16. Kojima, Fuhito, 2013. "Efficient resource allocation under multi-unit demand," Games and Economic Behavior, Elsevier, vol. 82(C), pages 1-14.
    17. Imamura, Kenzo & Kawase, Yasushi, 2024. "Efficient matching under general constraints," Games and Economic Behavior, Elsevier, vol. 145(C), pages 197-207.
    18. Afacan, Mustafa Oǧuz, 2020. "Graduate admission with financial support," Journal of Mathematical Economics, Elsevier, vol. 87(C), pages 114-127.
    19. Minoru Kitahara & Yasunori Okumura, 2021. "Improving efficiency in school choice under partial priorities," International Journal of Game Theory, Springer;Game Theory Society, vol. 50(4), pages 971-987, December.
    20. Wu, Binzhen & Zhong, Xiaohan, 2020. "Matching inequality and strategic behavior under the Boston mechanism: Evidence from China's college admissions," Games and Economic Behavior, Elsevier, vol. 123(C), pages 1-21.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:gamebe:v:132:y:2022:i:c:p:400-420. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/622836 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.