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Reversing Reserves

Author

Listed:
  • Parag A. Pathak

    (MIT)

  • Alex Rees-Jones

    (Cornell University)

  • Tayfun Sönmez

    (Boston College)

Abstract

Affirmative action policies are often implemented through reserve systems. We contend that the functioning of these systems is counterintuitive, and that the consequent misunderstanding leads individuals to support policies that ineffectively pursue their goals. We present 1,013 participants in the Understanding America Study with incentivized choices between reserve policies that vary in all decision-relevant parameters. Many subjects’ choices are rationalized by a nearly correct decision rule, with errors driven solely by the incorrect belief that reversing the processing order has no effect. The prevalence of this belief helps to explain otherwise surprising decisions made in field applications of reserve systems.

Suggested Citation

  • Parag A. Pathak & Alex Rees-Jones & Tayfun Sönmez, 2020. "Reversing Reserves," Boston College Working Papers in Economics 995, Boston College Department of Economics.
    • Handle: RePEc:boc:bocoec:995
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    References listed on IDEAS

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    1. Tayfun Sönmez & M. Bumin Yenmez, 2019. "Affirmative Action in India via Vertical and Horizontal Reservations," Boston College Working Papers in Economics 977, Boston College Department of Economics.
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    6. Tayfun Sönmez & M. Bumin Yenmez, 2019. "Constitutional Implementation of Vertical and Horizontal Reservations in India: A Unified Mechanism for Civil Service Allocation and College Admissions," Boston College Working Papers in Economics 978, Boston College Department of Economics.
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    10. Dur, Umut & Pathak, Parag A. & Sönmez, Tayfun, 2020. "Explicit vs. statistical targeting in affirmative action: Theory and evidence from Chicago's exam schools," Journal of Economic Theory, Elsevier, vol. 187(C).
    11. Alex Rees-Jones & Ran Shorrer & Chloe Tergiman, 2024. "Correlation Neglect in Student-to-School Matching," American Economic Journal: Microeconomics, American Economic Association, vol. 16(3), pages 1-42, August.
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    14. Parag A. Pathak & Alex Rees-Jones & Tayfun Sönmez, 2025. "Immigration Lottery Design: Engineered and Coincidental Consequences of H-1B Reforms," The Review of Economics and Statistics, MIT Press, vol. 107(1), pages 1-13, January.
    15. Ding, Tingting & Schotter, Andrew, 2017. "Matching and chatting: An experimental study of the impact of network communication on school-matching mechanisms," Games and Economic Behavior, Elsevier, vol. 103(C), pages 94-115.
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    2. Parag A. Pathak & Tayfun Sönmez & M. Utku Ünver & M. Bumin Yenmez, 2020. "Leaving No Ethical Value Behind: Triage Protocol Design for Pandemic Rationing," NBER Working Papers 26951, National Bureau of Economic Research, Inc.
    3. Parag A. Pathak & Alex Rees-Jones & Tayfun Sönmez, 2025. "Immigration Lottery Design: Engineered and Coincidental Consequences of H-1B Reforms," The Review of Economics and Statistics, MIT Press, vol. 107(1), pages 1-13, January.
    4. P'eter Bir'o & Avinatan Hassidim & Assaf Romm & Ran I. Shorrer & S'andor S'ov'ag'o, 2020. "The Large Core of College Admission Markets: Theory and Evidence," Papers 2010.08631, arXiv.org, revised Aug 2022.

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    Keywords

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    JEL classification:

    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • D9 - Microeconomics - - Micro-Based Behavioral Economics
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design

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