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Beyond Truth-Telling: Preference Estimation with Centralized School Choice and College Admissions

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

Abstract

We propose novel approaches and tests for estimating student preferences with data from centralized matching mechanisms, like the Gale-Shapley Deferred Acceptance, when students are strictly ranked by, e.g., test scores. 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 matched with her favorite school/college among those she is qualified for ex post. Having illustrated the approaches in simulations, we apply them to school choice data from Paris and demonstrate evidence supporting stability but not truth-telling. We discuss when each approach is more appropriate in real-life settings.

Suggested Citation

  • Fack, Gabrielle & Grenet, Julien & He, Yinghua, 2015. "Beyond Truth-Telling: Preference Estimation with Centralized School Choice and College Admissions," TSE Working Papers 15-607, Toulouse School of Economics (TSE), revised Sep 2017.
  • Handle: RePEc:tse:wpaper:29845
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Ran I. Shorrer & Sandor Sovago, 2017. "Obvious Mistakes in a Strategically Simple College Admissions Environment," Tinbergen Institute Discussion Papers 17-107/V, Tinbergen Institute.
    2. Adam Kapor & Christopher A. Neilson & Seth D. Zimmerman, 2017. "Heterogeneous Beliefs and School Choice Mechanisms," Working Papers 612, Princeton University, Department of Economics, Industrial Relations Section..
    3. Grenet, Julien & He, Yinghua & Kübler, Dorothea, 2019. "Decentralizing centralized matching markets: Implications from early offers in university admissions," Discussion Papers, Research Unit: Market Behavior SP II 2019-208, WZB Berlin Social Science Center.
    4. Laurent Gobillon & Dominique Meurs & Sébastien Roux, 2017. "Differences in positions along a hierarchy: Counterfactuals based on an assignment," PSE Working Papers halshs-01513012, HAL.
    5. 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.
    6. 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.
    7. Gobillon, Laurent & Meurs, Dominique & Roux, Sébastien, 2017. "Differences in Positions along a Hierarchy: Counterfactuals Based on an Assignment Model," IZA Discussion Papers 10726, Institute of Labor Economics (IZA).

    More about this item

    Keywords

    Gale-Shapley Deferred-Acceptance Mechanism; School Choice; Stable Matching; Student Preferences; Admission Criteria;

    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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