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Demand analysis using strategic reports: An application to a school choice mechanism
Resource type
Journal Article
Authors/contributors
- Agarwal, Nikhil (Author)
- Somaini, Paulo (Author)
Title
Demand analysis using strategic reports: An application to a school choice mechanism
Abstract
Several school districts use assignment systems that give students an incentive to misrepresent their preferences. We find evidence consistent with strategic behavior in Cambridge. Such strategizing can complicate preference analysis. This paper develops empirical methods for studying random utility models in a new and large class of school choice mechanisms. We show that preferences are nonparametrically identified under either sufficient variation in choice environments or a preference shifter. We then develop a tractable estimation procedure and apply it to Cambridge. Estimates suggest that while 83% of students are assigned to their stated first choice, only 72% are assigned to their true first choice because students avoid ranking competitive schools. Assuming that students behave optimally, the Immediate Acceptance mechanism is preferred by the average student to the Deferred Acceptance mechanism by an equivalent of 0.08 miles. The estimated difference is smaller if beliefs are biased, and reversed if students report preferences truthfully.
Publication
Econometrica
Volume
86
Issue
2
Pages
391-444
Date
2018
Journal Abbr
Econometrica
Language
en
ISSN
0012-9682
Short Title
Demand analysis using strategic reports
Accessed
24/03/2025, 11:37
Library Catalogue
DOI.org (Crossref)
Citation
Agarwal, N., & Somaini, P. (2018). Demand analysis using strategic reports: An application to a school choice mechanism. Econometrica, 86(2), 391–444. https://doi.org/10.3982/ECTA13615
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