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A theory of school choice lotteries

Author Info

Listed author(s):
  • 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.

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File URL: http://econtheory.org/ojs/index.php/te/article/viewFile/20150543/13036/397
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Article provided by Econometric Society in its journal Theoretical Economics.

Volume (Year): 10 (2015)
Issue (Month): 2 (May)
Pages:

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Handle: RePEc:the:publsh:1558
Contact details of provider: Web page: http://econtheory.org

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

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Find related papers by 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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Cited by:

  1. Onur Kesten & Morimitsu Kurino & Alexander S. Nesterov, 2017. "Efficient lottery design," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 48(1), pages 31-57, January.
  2. Fuhito Kojima & M. Ünver, 2014. "The “Boston” school-choice mechanism: an axiomatic approach," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 55(3), pages 515-544, April.
  3. Erdil, Aytek, 2014. "Strategy-proof stochastic assignment," Journal of Economic Theory, Elsevier, vol. 151(C), pages 146-162.
  4. Clayton Featherstone & Muriel Niederle, 2008. "Ex Ante Efficiency in School Choice Mechanisms: An Experimental Investigation," NBER Working Papers 14618, National Bureau of Economic Research, Inc.
  5. Haris Aziz & Bettina Klaus, 2017. "Random Matching under Priorities: Stability and No Envy Concepts," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 17.09, Université de Lausanne, Faculté des HEC, DEEP.
  6. Jan Christoph Schlegel, 2016. "Ex-Ante Stable Lotteries," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 16.23, Université de Lausanne, Faculté des HEC, DEEP.
  7. Yenmez, M. Bumin & Yildirim, Muhammed Ali & Hafalir, Isa Emin, 2013. "Effective affirmative action in school choice," Theoretical Economics, Econometric Society, vol. 8(2), May.
  8. Atila Abdulkadiroglu & Parag A. Pathak & Alvin E. Roth, 2009. "Strategy-Proofness versus Efficiency in Matching with Indifferences: Redesigning the NYC High School Match," American Economic Review, American Economic Association, vol. 99(5), pages 1954-1978, December.
  9. Ünver, M. Utku & Kesten, Onur & Kurino, Morimitsu & Hashimoto, Tadashi & Hirata, Daisuke, 2014. "Two axiomatic approaches to the probabilistic serial mechanism," Theoretical Economics, Econometric Society, vol. 9(1), January.
  10. Manjunath, Vikram, 2016. "Fractional matching markets," Games and Economic Behavior, Elsevier, vol. 100(C), pages 321-336.
  11. Doğan, Battal & Yıldız, Kemal, 2016. "Efficiency and stability of probabilistic assignments in marriage problems," Games and Economic Behavior, Elsevier, vol. 95(C), pages 47-58.
  12. Antonio Miralles, "undated". "Pseudomarkets with Priorities in Large Random Assignment Economies," Working Papers 537, Barcelona Graduate School of Economics.
  13. Duddy, Conal, 2017. "The structure of priority in the school choice problem," MPRA Paper 81057, University Library of Munich, Germany.
  14. Fuhito Kojima & M. Utku Ünver, 2010. "The 'Boston' School-Choice Mechanism," Boston College Working Papers in Economics 729, Boston College Department of Economics, revised 08 Oct 2010.
  15. Atila Abdulkadiroglu & Parag A. Pathak & Alvin E. Roth, 2009. "Strategy-proofness versus Efficiency in Matching with Indifferences: Redesigning the New York City High School Match," NBER Working Papers 14864, National Bureau of Economic Research, Inc.

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