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Aiding applicants: leveling the playing field within the immediate acceptance mechanism

Author

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  • Christian Basteck

    (WZB Berlin Social Science Center)

  • Marco Mantovani

    (University of Milan-Bicocca)

Abstract

In school choice problems, the widely used manipulable Immediate Acceptance mechanism (IA) disadvantages unsophisticated applicants, but may ex-ante Pareto dominate any strategy-proof alternative. In these cases, it may be preferable to aid applicants within IA, rather than to abandon it. In a laboratory experiment, we first document a substantial gap in strategy choices and outcomes between subjects of higher and lower cognitive ability under IA. We then test whether disclosing information on past applications levels the playing field. The treatment is effective in partially reducing the gap between applicants of above- and below-median cognitive ability and in curbing ability segregation across schools, but may leave the least able applicants further behind.

Suggested Citation

  • Christian Basteck & Marco Mantovani, 2023. "Aiding applicants: leveling the playing field within the immediate acceptance mechanism," Review of Economic Design, Springer;Society for Economic Design, vol. 27(1), pages 187-220, February.
    • Handle: RePEc:spr:reecde:v:27:y:2023:i:1:d:10.1007_s10058-021-00283-2
    DOI: 10.1007/s10058-021-00283-2
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    1. Hakimov, Rustamdjan & Kübler, Dorothea, 2021. "Experiments on centralized school choice and college admissions: a survey," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 24(2), pages 434-488.

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    More about this item

    Keywords

    Laboratory experiment; School choice; Immediate acceptance; Strategy-proofness; Cognitive ability; Mechanism design;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality

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