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School choice: Impossibilities for affirmative action

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  • Kojima, Fuhito

Abstract

This paper investigates the welfare effects of affirmative action policies in school choice. We show that affirmative action policies can have perverse consequences. Specifically, we demonstrate that there are market situations in which affirmative action policies inevitably hurt every minority student – the purported beneficiaries – under any stable matching mechanism. Furthermore, we show that another famous mechanism, the top trading cycles mechanism, suffers from the same drawback.

Suggested Citation

  • Kojima, Fuhito, 2012. "School choice: Impossibilities for affirmative action," Games and Economic Behavior, Elsevier, vol. 75(2), pages 685-693.
    • Handle: RePEc:eee:gamebe:v:75:y:2012:i:2:p:685-693
    DOI: 10.1016/j.geb.2012.03.003
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    References listed on IDEAS

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    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis

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