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Strategy-proofness versus Efficiency in Matching with Indifferences: Redesigning the New York City High School Match

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  • Atila Abdulkadiroglu
  • Parag A. Pathak
  • Alvin E. Roth

Abstract

The design of the New York City (NYC) High School match involved tradeoffs among efficiency, stability and strategy-proofness that raise new theoretical questions. We analyze a model with indifferences--ties--in school preferences. Simulations with field data and the theory favor breaking indifferences the same way at every school --single tie breaking-- in a student-proposing deferred acceptance mechanism. Any inefficiency associated with a realized tie breaking cannot be removed without harming student incentives. Finally, we empirically document the extent of potential efficiency loss associated with strategy-proofness and stability, and direct attention to some open questions.

Suggested Citation

  • Atila Abdulkadiroglu & Parag A. Pathak & Alvin E. Roth, 2009. "Strategy-proofness versus Efficiency in Matching with Indifferences: Redesigning the New York City High School Match," NBER Working Papers 14864, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:14864
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    References listed on IDEAS

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    2. Alvin E. Roth, 2009. "What Have We Learned from Market Design?," Innovation Policy and the Economy, University of Chicago Press, vol. 9(1), pages 79-112.
    3. Atila Abdulkadiroğlu & Parag A. Pathak & Alvin E. Roth, 2005. "The New York City High School Match," American Economic Review, American Economic Association, vol. 95(2), pages 364-367, May.
    4. EHLERS, Lars, 2006. "Respecting Priorities when Assigning Students to Schools," Cahiers de recherche 04-2006, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
    5. Atila Abdulkadiro?lu & Yeon-Koo Che & Yosuke Yasuda, 2015. "Expanding "Choice" in School Choice," American Economic Journal: Microeconomics, American Economic Association, vol. 7(1), pages 1-42, February.
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    7. Kesten, Onur & Unver, Utku, 2015. "A theory of school choice lotteries," Theoretical Economics, Econometric Society, vol. 10(2), May.
    8. Aytek Erdil & Haluk Ergin, 2008. "What's the Matter with Tie-Breaking? Improving Efficiency in School Choice," American Economic Review, American Economic Association, vol. 98(3), pages 669-689, June.
    9. , A. & ,, 2011. "Lotteries in student assignment: An equivalence result," Theoretical Economics, Econometric Society, vol. 6(1), January.
    10. Roth, Alvin E. & Sotomayor, Marilda, 1992. "Two-sided matching," Handbook of Game Theory with Economic Applications, in: R.J. Aumann & S. Hart (ed.), Handbook of Game Theory with Economic Applications, edition 1, volume 1, chapter 16, pages 485-541, Elsevier.
    11. Roth, Alvin E, 1991. "A Natural Experiment in the Organization of Entry-Level Labor Markets: Regional Markets for New Physicians and Surgeons in the United Kingdom," American Economic Review, American Economic Association, vol. 81(3), pages 415-440, June.
    12. Atila Abdulkadiroglu & Tayfun Sönmez, 2003. "School Choice: A Mechanism Design Approach," American Economic Review, American Economic Association, vol. 93(3), pages 729-747, June.
    13. Alvin E. Roth, 2002. "The Economist as Engineer: Game Theory, Experimentation, and Computation as Tools for Design Economics," Econometrica, Econometric Society, vol. 70(4), pages 1341-1378, July.
    14. Haeringer, Guillaume & Klijn, Flip, 2009. "Constrained school choice," Journal of Economic Theory, Elsevier, vol. 144(5), pages 1921-1947, September.
    15. Roth, Alvin E, 1984. "The Evolution of the Labor Market for Medical Interns and Residents: A Case Study in Game Theory," Journal of Political Economy, University of Chicago Press, vol. 92(6), pages 991-1016, December.
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    17. Sonmez, Tayfun, 1997. "Manipulation via Capacities in Two-Sided Matching Markets," Journal of Economic Theory, Elsevier, vol. 77(1), pages 197-204, November.
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    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D60 - Microeconomics - - Welfare Economics - - - General
    • I20 - Health, Education, and Welfare - - Education - - - General

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