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Beyond Truth-Telling: Preference Estimation with Centralized School Choice

Author

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  • Fack, Gabrielle
  • Grenet, Julien
  • He, Yinghua

Abstract

We propose novel approaches and tests for estimating student preferences with data from school choice mechanisms, e.g., the Gale-Shapley Deferred Acceptance. Without requiring truth-telling to be the unique equilibrium, we show that the matching is (asymptotically) stable, or justified-envy-free, implying that every student is assigned to her favorite school among those she is qualified for ex post. Having validated the methods in simulations, we apply them to data from Paris and reject truth-telling but not stability. Our estimates are then used to compare the sorting and welfare effects of alternative admission criteria prescribing how schools rank students in centralized mechanisms.

Suggested Citation

  • Fack, Gabrielle & Grenet, Julien & He, Yinghua, 2015. "Beyond Truth-Telling: Preference Estimation with Centralized School Choice," CEPR Discussion Papers 10907, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:10907
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Landaud, Fanny & Ly, Son-Thierry & Maurin, Eric, 2016. "Competitive Schools and the Gender Gap in the Choice of Field of Study," CEPR Discussion Papers 11411, C.E.P.R. Discussion Papers.
    2. He, Yinghua & Magnac, Thierry, 2017. "Application Costs and Congestion in Matching Markets," TSE Working Papers 17-870, Toulouse School of Economics (TSE), revised Feb 2019.
    3. Atila Abdulkadiroglu & Parag A. Pathak & Jonathan Schellenberg & Christopher R. Walters, 2017. "Do Parents Value School Effectiveness?," NBER Working Papers 23912, National Bureau of Economic Research, Inc.
    4. Li Chen & Juan Sebastian Pereyra Barreiro, 2015. "Self-Selection in School Choice," Working Papers ECARES ECARES 2015-52, ULB -- Universite Libre de Bruxelles.
    5. He, Yinghua & Magnac, Thierry, 2018. "A Pigouvian Approach to Congestion in Matching Markets," IZA Discussion Papers 11967, Institute of Labor Economics (IZA).

    More about this item

    Keywords

    admission criteria; Gale-Shapley deferred acceptance mechanism; school choice; stable matching; student preferences;

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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