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A theory of school choice lotteries

Author

Listed:
  • Kesten, Onur

    () (Tepper School of Business, Carnegie Mellon University)

  • Ünver, M. Utku

    () (Department of Economics, Boston College)

Abstract

A new mechanism was introduced in New York City and Boston to assign students to public schools. This mechanism was advocated for its superior fairness property, besides others. We introduce a new framework for school-choice problems and two notions of fairness in lottery design based on ex-ante stability. This framework unifies known many-to-one and one-sided matching models. We show that the NYC/Boston mechanism fails to satisfy these fairness properties. We then propose two new mechanisms, one that is ordinally Pareto-dominant within the class of strongly ex-ante stable mechanisms and one that satisfies ex-ante stability, equal treatment, and constrained ordinal-Pareto-efficiency.

Suggested Citation

  • Kesten, Onur & Ünver, M. Utku, 2015. "A theory of school choice lotteries," Theoretical Economics, Econometric Society, vol. 10(2), May.
    • Handle: RePEc:the:publsh:1558
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Matching; school choice; deferred acceptance; stability; ordinal efficiency; market design;

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation

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