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A Theory of School-Choice Lotteries

  • Onur Kesten

    ()

    (Carnegie Mellon University)

  • M. Utku Ünver

    (Boston College)

A new centralized mechanism was introduced in New York City and Boston to assign students to public schools in district school-choice programs. This mechanism was advocated for its superior fairness property, besides others, over the mechanisms it replaced. In this paper, we introduce a new framework for investigating school-choice matching problems and two ex-ante notions of fairness in lottery design, strong ex-ante stability and ex-ante stability. This frame- work generalizes known one-to-many two-sided and one-sided matching models. We first show that the new NYC/Boston mechanism fails to satisfy these fairness properties. We then propose two new mechanisms, the fractional deferred-acceptance mechanism, which is ordinally Pareto dominant within the class of strongly ex-ante stable mechanisms, and the fractional deferred- acceptance and trading mechanism, which satisfies equal treatment of equals and constrained ordinal Pareto efficiency within the class of ex-ante stable mechanisms.

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Paper provided by Boston College Department of Economics in its series Boston College Working Papers in Economics with number 737.

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Date of creation: 01 May 2010
Date of revision: 29 Jun 2012
Handle: RePEc:boc:bocoec:737
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