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Redesigning the US Army’s Branching Process: A Case Study in Minimalist Market Design

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  • Kyle Greenberg
  • Parag A. Pathak
  • Tayfun Sönmez

Abstract

We present the proof-of-concept for minimalist market design (Sönmez, 2023) as an effective methodology to enhance an institution based on the desiderata of stakeholders with minimal interference. Four objectives – respecting merit, increasing retention, aligning talent, and enhancing trust – guided reforms to US Army’s centralized branching process of cadets to military specialties since 2006. USMA’s mechanism for the Class of 2020 exacerbated challenges implementing these objectives. Formulating the Army’s desiderata as rigorous axioms, we analyze their implications. Under our minimalist approach to institution redesign, the Army’s objectives uniquely identify a branching mechanism. Our design is now adopted at USMA and ROTC.

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  • Kyle Greenberg & Parag A. Pathak & Tayfun Sönmez, 2021. "Redesigning the US Army’s Branching Process: A Case Study in Minimalist Market Design," NBER Working Papers 28911, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:28911
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    1. Hirata, Daisuke & 平田, 大祐 & Kasuya, Yusuke & 糟谷, 祐介 & Okumura, Yasunori & 奥村, 保規, 2023. "Stability, Strategy-Proofness, and Respect for Improvements," Discussion Papers 2023-01, Graduate School of Economics, Hitotsubashi University.
    2. Xiang Han & Onur Kesten & M. Utku Ünver, 2021. "Blood Allocation with Replacement Donors: A Theory of Multi-unit Exchange with Compatibility-based Preferences," Boston College Working Papers in Economics 1038, Boston College Department of Economics.
    3. Battal Dou{g}an & Kenzo Imamura & M. Bumin Yenmez, 2022. "Market Design with Deferred Acceptance: A Recipe for Policymaking," Papers 2209.06777, arXiv.org.
    4. Gian Caspari & Manshu Khanna, 2021. "Non-Standard Choice in Matching Markets," Papers 2111.06815, arXiv.org, revised Aug 2024.
    5. Kasuya, Yusuke, 2021. "Unilateral substitutability is necessary for doctor-optimal stability," Economics Letters, Elsevier, vol. 207(C).
    6. Scott Duke Kominers, 2024. "Respect for Improvements and Comparative Statics in Matching Markets," The Journal of Mechanism and Institution Design, Society for the Promotion of Mechanism and Institution Design, University of York, vol. 9(1), pages 83-104, December.

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    JEL classification:

    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design

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