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Sequential School Choice with Public and Private Schools

Andersson, Tommy LU ; Dur , Umut ; Ertemel , Sinan and Kesten , Onur (2018) In Working Papers
Abstract
Motivated by school admission systems used in, e.g., Turkey and Sweden, this paper investigates a sequential two-stage admission system with public and private schools. To perform the analysis, relevant axioms and equilibrium notions need to be tailored for the considered dynamic setting. In particular, a notion of truthfulness, referred to as straightforwardness, is introduced. In sharp contrast to classic one-stage admission systems, sequentiality leads to a trade-off between the existence of a straightforward (i.e., truthful) equilibrium and non-wastefulness. Given this insight, we identify the unique set of rules for two-stage admission systems that guarantees the existence of a straightforward equilibrium and, at the same time,... (More)
Motivated by school admission systems used in, e.g., Turkey and Sweden, this paper investigates a sequential two-stage admission system with public and private schools. To perform the analysis, relevant axioms and equilibrium notions need to be tailored for the considered dynamic setting. In particular, a notion of truthfulness, referred to as straightforwardness, is introduced. In sharp contrast to classic one-stage admission systems, sequentiality leads to a trade-off between the existence of a straightforward (i.e., truthful) equilibrium and non-wastefulness. Given this insight, we identify the unique set of rules for two-stage admission systems that guarantees the existence of a straightforward equilibrium and, at the same time, reduces the number of wasted school seats. Several existing admission systems are also theoretically analyzed within our general framework and empirically evaluated using school choice data from Sweden. The latter analysis allows us to quantify various trade-offs in sequential admission systems. (Less)
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author
organization
publishing date
type
Working Paper
publication status
published
subject
keywords
market design, sequential school choice, private schools, public schools, straightforward SPNE, non-wastefulness, C71, C78, D47, D71, D78, D82
in
Working Papers
issue
2018:39
pages
41 pages
language
English
LU publication?
yes
id
832c9ecb-7c4f-4fdd-8492-b347b969de81
alternative location
https://swopec.hhs.se/lunewp/abs/lunewp2018_039.htm
date added to LUP
2018-12-11 10:44:54
date last changed
2018-12-11 10:44:54
@misc{832c9ecb-7c4f-4fdd-8492-b347b969de81,
  abstract     = {Motivated by school admission systems used in, e.g., Turkey and Sweden, this paper investigates a sequential two-stage admission system with public and private schools. To perform the analysis, relevant axioms and equilibrium notions need to be tailored for the considered dynamic setting. In particular, a notion of truthfulness, referred to as straightforwardness, is introduced. In sharp contrast to classic one-stage admission systems, sequentiality leads to a trade-off between the existence of a straightforward (i.e., truthful) equilibrium and non-wastefulness. Given this insight, we identify the unique set of rules for two-stage admission systems that guarantees the existence of a straightforward equilibrium and, at the same time, reduces the number of wasted school seats. Several existing admission systems are also theoretically analyzed within our general framework and empirically evaluated using school choice data from Sweden. The latter analysis allows us to quantify various trade-offs in sequential admission systems. },
  author       = {Andersson, Tommy and Dur , Umut   and Ertemel , Sinan  and Kesten , Onur  },
  keyword      = {market design,sequential school choice,private schools,public schools,straightforward SPNE,non-wastefulness,C71,C78,D47,D71,D78,D82},
  language     = {eng},
  note         = {Working Paper},
  number       = {2018:39},
  pages        = {41},
  series       = {Working Papers},
  title        = {Sequential School Choice with Public and Private Schools},
  year         = {2018},
}