Admissions policies often use reserves to grant certain applicants higher priority for some (but not all) available seats. Boston's school choice system, for example, reserved half of each school's seats for local neighborhood applicants while leaving the other half for open competition. This paper shows that in the presence of reserves, the effect of the precedence order (i.e., the order in which different types of seats are filled) on distributional objectives is comparable to the effect of adjusting reserve sizes. Either lowering the precedence order positions of reserve seats at a school or increasing the number of reserve seats weakly increases reserve-group assignment at that school. Using data from Boston, we show that reserve and precedence adjustments have similar quantitative effects. Our results illustrate that policies about precedence, heretofore underexplored, are inseparable from other aspects of admissions policy. Moreover, our findings explain the puzzling empirical fact that despite careful attention to the importance of neighborhood priority, Boston's implementation of its 50-50 reserve-open seat split was nearly identical to the outcome of a counterfactual system without any reserves. Transparency about these issues-in particular, how precedence unintentionally undermined the intended admissions policy-led to the elimination of Boston's walk zones.JEL: C78, D50, D61, D67, I21
An important but under-explored issue in student assignment procedures is heterogeneity in the level of strategic sophistication among students. Our work provides the first direct measure of which students rank schools following their true preference order (sincere students) and which rank schools by manipulating their true preferences (sophisticated students). We present evidence that our proxy for sophistication captures systematic differences among students. Our results demonstrate that sophisticated students are 9.6 percentage points more likely to be assigned to one of their preferred schools. Further, we show that this large difference in assignment probability occurs because sophisticated students systematically avoid over-demanded schools. (JEL D82, H75, I21, I28)
We study assignment systems where objects are assigned to agents sequentially. Student placement to exam and mainstream schools in the USA and centralized teacher appointment in Turkey are two of many examples. Despite their prevalence in practice, research on sequential systems has been rather limited. We analyze the properties of the systems in use in these places and show that they do not satisfy desirable fairness, welfare, and incentive criteria. It turns out such shortcomings are inherent in more general sequential assignment systems as well. We then analyze preference revelation games associated with various sequential systems including those comprising of combinations of well-known mechanisms.
At least one co-author has disclosed a financial relationship of potential relevance for this research. Further information is available online at http://www.nber.org/papers/w18981.ack NBER working papers are circulated for discussion and comment purposes. They have not been peerreviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications.
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