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Local non-bossiness

Author

Listed:
  • Duque-Rosas, Eduardo
  • Pereyra, Juan S.
  • Torres-Martínez, Juan Pablo

Abstract

The student-optimal stable mechanism (DA), the most popular mechanism in school choice, is the only one that is stable and strategy-proof. However, when DA is implemented, a student can change the schools of others without changing her own. We show that this drawback is limited: a student cannot change her schoolmates while remaining at the same school. We refer to this new property as local non-bossiness and use it to provide a new characterization of DA that does not rely on stability. Furthermore, we show that local non-bossiness plays a crucial role in providing incentives to be truthful when students have preferences over their colleagues. As long as students have school-lexicographic preferences over colleagues—meaning that they first consider the school to which they are assigned and then their schoolmates—DA induces the only stable and strategy-proof mechanism. There is limited room to expand this preference domain without compromising the existence of a stable and strategy-proof mechanism.

Suggested Citation

  • Duque-Rosas, Eduardo & Pereyra, Juan S. & Torres-Martínez, Juan Pablo, 2026. "Local non-bossiness," LSE Research Online Documents on Economics 140789, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:140789
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    File URL: https://researchonline.lse.ac.uk/id/eprint/140789/
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    References listed on IDEAS

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    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory

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