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Endogenous preferential treatment in centralized admissions

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  • Y. Stephen Chiu
  • Weiwei Weng

Abstract

We study a model of centralized admissions in which schools are allowed to pre‐commit to admitting qualified applicants who rank them as their top choices over more qualified applicants who do not. A less popular school may use the pre‐commitment to steal applicants who otherwise would not choose it as their top choice (the stealing motive); a popular school may use the pre‐commitment to prevent its own applicants from being stolen (the preemptive motive). We identify the conditions for these two motives to exist. We also clarify the relationship of this phenomenon with that of pre‐arrangement of school places.

Suggested Citation

  • Y. Stephen Chiu & Weiwei Weng, 2009. "Endogenous preferential treatment in centralized admissions," RAND Journal of Economics, RAND Corporation, vol. 40(2), pages 258-282, June.
    • Handle: RePEc:bla:randje:v:40:y:2009:i:2:p:258-282
    DOI: 10.1111/j.1756-2171.2009.00064.x
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    References listed on IDEAS

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    1. Roth, Alvin E & Xing, Xiaolin, 1997. "Turnaround Time and Bottlenecks in Market Clearing: Decentralized Matching in the Market for Clinical Psychologists," Journal of Political Economy, University of Chicago Press, vol. 105(2), pages 284-329, April.
    2. Timothy Besley & Maitreesh Ghatak, 2005. "Competition and Incentives with Motivated Agents," American Economic Review, American Economic Association, vol. 95(3), pages 616-636, June.
    3. 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.
    4. Li, Hao & Rosen, Sherwin, 1998. "Unraveling in Matching Markets," American Economic Review, American Economic Association, vol. 88(3), pages 371-387, June.
    5. Ergin, Haluk & Sonmez, Tayfun, 2006. "Games of school choice under the Boston mechanism," Journal of Public Economics, Elsevier, vol. 90(1-2), pages 215-237, January.
    6. Parag A. Pathak & Tayfun Sonmez, 2008. "Leveling the Playing Field: Sincere and Sophisticated Players in the Boston Mechanism," American Economic Review, American Economic Association, vol. 98(4), pages 1636-1652, September.
    7. 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.
    8. Roth, Alvin E & Xing, Xiaolin, 1994. "Jumping the Gun: Imperfections and Institutions Related to the Timing of Market Transactions," American Economic Review, American Economic Association, vol. 84(4), pages 992-1044, September.
    9. Wing Suen, 2000. "A Competitive Theory of Equilibrium and Disequilibrium Unravelling in Two-Sided Matching," RAND Journal of Economics, The RAND Corporation, vol. 31(1), pages 101-120, Spring.
    10. Sonmez, Tayfun, 1999. "Can Pre-arranged Matches Be Avoided in Two-Sided Matching Markets?," Journal of Economic Theory, Elsevier, vol. 86(1), pages 148-156, May.
    11. Elliott Peranson & Alvin E. Roth, 1999. "The Redesign of the Matching Market for American Physicians: Some Engineering Aspects of Economic Design," American Economic Review, American Economic Association, vol. 89(4), pages 748-780, September.
    12. Alvin E. Roth, 1982. "The Economics of Matching: Stability and Incentives," Mathematics of Operations Research, INFORMS, vol. 7(4), pages 617-628, November.
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    Cited by:

    1. Timm Opitz & Christoph Schwaiger, 2023. "Reciprocal Preferences in Matching Markets," Rationality and Competition Discussion Paper Series 388, CRC TRR 190 Rationality and Competition.
    2. Jaimie W. Lien & Jie Zheng & Xiaohan Zhong, 2016. "Preference submission timing in school choice matching: testing fairness and efficiency in the laboratory," Experimental Economics, Springer;Economic Science Association, vol. 19(1), pages 116-150, March.

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