IDEAS home Printed from https://ideas.repec.org/a/eee/jetheo/v176y2018icp859-885.html
   My bibliography  Save this article

A college admissions clearinghouse

Author

Listed:
  • Yenmez, M. Bumin

Abstract

I propose a centralized clearinghouse for college admissions where students can commit to enroll, as in early-decision programs. Furthermore, students can specify financial aid in their preferences, and they can be matched with multiple colleges simultaneously. This clearinghouse keeps the desirable properties of decentralized college admissions, like commitment and yield management, while getting rid of the undesirable aspects, such as unfairness and unraveling.

Suggested Citation

  • Yenmez, M. Bumin, 2018. "A college admissions clearinghouse," Journal of Economic Theory, Elsevier, vol. 176(C), pages 859-885.
    • Handle: RePEc:eee:jetheo:v:176:y:2018:i:c:p:859-885
    DOI: 10.1016/j.jet.2018.05.010
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S002205311830190X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jet.2018.05.010?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Robert Shimer & Lones Smith, 2000. "Assortative Matching and Search," Econometrica, Econometric Society, vol. 68(2), pages 343-370, March.
    2. Echenique, Federico, 2007. "Counting combinatorial choice rules," Games and Economic Behavior, Elsevier, vol. 58(2), pages 231-245, February.
    3. Ehlers, Lars & Hafalir, Isa E. & Yenmez, M. Bumin & Yildirim, Muhammed A., 2014. "School choice with controlled choice constraints: Hard bounds versus soft bounds," Journal of Economic Theory, Elsevier, vol. 153(C), pages 648-683.
    4. Hector Chade & Gregory Lewis & Lones Smith, 2014. "Student Portfolios and the College Admissions Problem," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 81(3), pages 971-1002.
    5. Hector Chade & Lones Smith, 2006. "Simultaneous Search," Econometrica, Econometric Society, vol. 74(5), pages 1293-1307, September.
    6. Hafalir, Isa E. & Hakimov, Rustamdjan & Kübler, Dorothea & Kurino, Morimitsu, 2018. "College admissions with entrance exams: Centralized versus decentralized," Journal of Economic Theory, Elsevier, vol. 176(C), pages 886-934.
    7. Philipp D. Dimakopoulos & Christian-Philipp Heller, "undated". "Matching with Waiting Times: The German Entry-Level Labour Market for Lawyers," BDPEMS Working Papers 2014005, Berlin School of Economics.
    8. Christopher Avery & Soohyung Lee & Alvin E. Roth, 2014. "College Admissions as Non-Price Competition: The Case of South Korea," NBER Working Papers 20774, National Bureau of Economic Research, Inc.
    9. Christopher P. Chambers & M. Bumin Yenmez, 2017. "Choice and Matching," American Economic Journal: Microeconomics, American Economic Association, vol. 9(3), pages 126-147, August.
    10. Klaus, Bettina & Walzl, Markus, 2009. "Stable many-to-many matchings with contracts," Journal of Mathematical Economics, Elsevier, vol. 45(7-8), pages 422-434, July.
    11. Alkan, Ahmet & Gale, David, 2003. "Stable schedule matching under revealed preference," Journal of Economic Theory, Elsevier, vol. 112(2), pages 289-306, October.
    12. Ahmet Alkan, 2002. "A class of multipartner matching markets with a strong lattice structure," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 19(4), pages 737-746.
    13. Konishi, Hideo & Unver, M. Utku, 2006. "Credible group stability in many-to-many matching problems," Journal of Economic Theory, Elsevier, vol. 129(1), pages 57-80, July.
    14. Tayfun Sönmez & M. Utku Ünver, 2010. "Course Bidding At Business Schools," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 51(1), pages 99-123, February.
    15. , & ,, 2006. "A theory of stability in many-to-many matching markets," Theoretical Economics, Econometric Society, vol. 1(2), pages 233-273, June.
    16. Federico Echenique & M. Bumin Yenmez, 2015. "How to Control Controlled School Choice," American Economic Review, American Economic Association, vol. 105(8), pages 2679-2694, August.
    17. Lauermann, Stephan & Nöldeke, Georg, 2014. "Stable marriages and search frictions," Journal of Economic Theory, Elsevier, vol. 151(C), pages 163-195.
    18. Abizada, Azar, 2016. "Stability and incentives for college admissions with budget constraints," Theoretical Economics, Econometric Society, vol. 11(2), May.
    19. Roth, Alvin E, 1986. "On the Allocation of Residents to Rural Hospitals: A General Property of Two-Sided Matching Markets," Econometrica, Econometric Society, vol. 54(2), pages 425-427, March.
    20. Marek Pycia & M Bumin Yenmez, 2023. "Matching with Externalities," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 90(2), pages 948-974.
    21. Chambers, Christopher P. & Yenmez, M. Bumin, 2018. "A simple characterization of responsive choice," Games and Economic Behavior, Elsevier, vol. 111(C), pages 217-221.
    22. Alexander Westkamp, 2013. "An analysis of the German university admissions system," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 53(3), pages 561-589, August.
    23. Orhan Aygün & Bertan Turhan, 2017. "Large-Scale Affirmative Action in School Choice: Admissions to IITs in India," American Economic Review, American Economic Association, vol. 107(5), pages 210-213, May.
    24. Muriel Niederle & Leeat Yariv, 2009. "Decentralized Matching with Aligned Preferences," NBER Working Papers 14840, National Bureau of Economic Research, Inc.
    25. Tayfun Sönmez, 2013. "Bidding for Army Career Specialties: Improving the ROTC Branching Mechanism," Journal of Political Economy, University of Chicago Press, vol. 121(1), pages 186-219.
    26. , Emin & , Bumin & , Ali, 2013. "Effective affirmative action in school choice," Theoretical Economics, Econometric Society, vol. 8(2), May.
    27. Orhan Ayg?n & Tayfun S?nmez, 2013. "Matching with Contracts: Comment," American Economic Review, American Economic Association, vol. 103(5), pages 2050-2051, August.
    28. John William Hatfield & Paul R. Milgrom, 2005. "Matching with Contracts," American Economic Review, American Economic Association, vol. 95(4), pages 913-935, September.
    29. Michael Ostrovsky, 2008. "Stability in Supply Chain Networks," American Economic Review, American Economic Association, vol. 98(3), pages 897-923, June.
    30. Hatfield, John William & Kojima, Fuhito, 2010. "Substitutes and stability for matching with contracts," Journal of Economic Theory, Elsevier, vol. 145(5), pages 1704-1723, September.
    31. Tamás Fleiner, 2003. "A Fixed-Point Approach to Stable Matchings and Some Applications," Mathematics of Operations Research, INFORMS, vol. 28(1), pages 103-126, February.
    32. Atila Abdulkadiroglu & Tayfun Sönmez, 2003. "School Choice: A Mechanism Design Approach," American Economic Review, American Economic Association, vol. 93(3), pages 729-747, June.
    33. Tayfun Sönmez & Tobias B. Switzer, 2013. "Matching With (Branch‐of‐Choice) Contracts at the United States Military Academy," Econometrica, Econometric Society, vol. 81(2), pages 451-488, March.
    34. Yeon-Koo Che & Youngwoo Koh, 2016. "Decentralized College Admissions," Journal of Political Economy, University of Chicago Press, vol. 124(5), pages 1295-1338.
    35. Avinatan Hassidim & Assaf Romm & Ran I. Shorrer, 2016. ""Strategic" Behavior in a Strategy-Proof Environment," Working Paper 413411, Harvard University OpenScholar.
    36. Roth, Alvin E, 1984. "Stability and Polarization of Interests in Job Matching," Econometrica, Econometric Society, vol. 52(1), pages 47-57, January.
    37. Alp E. Atakan, 2006. "Assortative Matching with Explicit Search Costs," Econometrica, Econometric Society, vol. 74(3), pages 667-680, May.
    38. Plott, Charles R, 1973. "Path Independence, Rationality, and Social Choice," Econometrica, Econometric Society, vol. 41(6), pages 1075-1091, November.
    39. Muriel Niederle & Leeat Yariv, 2009. "Decentralized Matching with Aligned Preferences," Working Papers 2009-3, Princeton University. Economics Department..
    40. Tayfun Sönmez & M. Utku Ünver, 2009. "Matching, Allocation, and Exchange of Discrete Resources," Boston College Working Papers in Economics 717, Boston College Department of Economics.
    41. Balinski, Michel & Sonmez, Tayfun, 1999. "A Tale of Two Mechanisms: Student Placement," Journal of Economic Theory, Elsevier, vol. 84(1), pages 73-94, January.
    42. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alexander Teytelboym & Shengwu Li & Scott Duke Kominers & Mohammad Akbarpour & Piotr Dworczak, 2021. "Discovering Auctions: Contributions of Paul Milgrom and Robert Wilson," Scandinavian Journal of Economics, Wiley Blackwell, vol. 123(3), pages 709-750, July.
    2. Nei, Stephen & Pakzad-Hurson, Bobak, 2021. "Strategic disaggregation in matching markets," Journal of Economic Theory, Elsevier, vol. 197(C).
    3. Antonio Romero-Medina & Matteo Triossi, 2023. "Take-it-or-leave-it contracts in many-to-many matching markets," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 75(2), pages 591-623, February.
    4. Bó, Inácio & Hakimov, Rustamdjan, 2022. "The iterative deferred acceptance mechanism," Games and Economic Behavior, Elsevier, vol. 135(C), pages 411-433.
    5. P'eter Bir'o & Avinatan Hassidim & Assaf Romm & Ran I. Shorrer & S'andor S'ov'ag'o, 2020. "The Large Core of College Admission Markets: Theory and Evidence," Papers 2010.08631, arXiv.org, revised Aug 2022.
    6. Hafalir, Isa E. & Kojima, Fuhito & Yenmez, M. Bumin, 2022. "Interdistrict school choice: A theory of student assignment," Journal of Economic Theory, Elsevier, vol. 201(C).
    7. Adam Kapor & Mohit Karnani & Christopher Neilson, 2019. "Negative Externalities of Off Platform Options and the Efficiency of Centralized Assignment Mechanisms," Working Papers 635, Princeton University, Department of Economics, Industrial Relations Section..
    8. Bando, Keisuke & Hirai, Toshiyuki & Zhang, Jun, 2021. "Substitutes and stability for many-to-many matching with contracts," Games and Economic Behavior, Elsevier, vol. 129(C), pages 503-512.
    9. Ayse Mumcu & Ismail Saglam, 2021. "Strategic Issues in College Admissions with Early Decision," Economics Bulletin, AccessEcon, vol. 41(1), pages 66-84.
    10. Ehlers, Lars, 2023. "Student-optimal interdistrict school choice: District-based versus school-based admissions," Games and Economic Behavior, Elsevier, vol. 142(C), pages 411-422.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Avataneo, Michelle & Turhan, Bertan, 2021. "Slot-specific priorities with capacity transfers," Games and Economic Behavior, Elsevier, vol. 129(C), pages 536-548.
    2. Aygün, Orhan & Turhan, Bertan, 2020. "Dynamic reserves in matching markets," Journal of Economic Theory, Elsevier, vol. 188(C).
    3. Hafalir, Isa E. & Kojima, Fuhito & Yenmez, M. Bumin, 2022. "Interdistrict school choice: A theory of student assignment," Journal of Economic Theory, Elsevier, vol. 201(C).
    4. M. Bumin Yenmez, 2014. "College Admissions," GSIA Working Papers 2014-E24, Carnegie Mellon University, Tepper School of Business.
    5. Scott Duke Kominers & Alexander Teytelboym & Vincent P Crawford, 2017. "An invitation to market design," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 33(4), pages 541-571.
    6. Yuichiro Kamada & Fuhito Kojima, 2020. "Accommodating various policy goals in matching with constraints," The Japanese Economic Review, Springer, vol. 71(1), pages 101-133, January.
    7. Afacan, Mustafa Oǧuz, 2020. "Graduate admission with financial support," Journal of Mathematical Economics, Elsevier, vol. 87(C), pages 114-127.
    8. Hatfield, John William & Kominers, Scott Duke, 2017. "Contract design and stability in many-to-many matching," Games and Economic Behavior, Elsevier, vol. 101(C), pages 78-97.
    9. Aygün, Orhan & Turhan, Bertan, 2021. "How to De-reserve Reserves," ISU General Staff Papers 202103100800001123, Iowa State University, Department of Economics.
    10. Hatfield, John William & Kojima, Fuhito, 2010. "Substitutes and stability for matching with contracts," Journal of Economic Theory, Elsevier, vol. 145(5), pages 1704-1723, September.
    11. Klijn, Flip & Yazıcı, Ayşe, 2014. "A many-to-many ‘rural hospital theorem’," Journal of Mathematical Economics, Elsevier, vol. 54(C), pages 63-73.
    12. Kojima, Fuhito & Tamura, Akihisa & Yokoo, Makoto, 2018. "Designing matching mechanisms under constraints: An approach from discrete convex analysis," Journal of Economic Theory, Elsevier, vol. 176(C), pages 803-833.
    13. Tayfun Sönmez & M. Bumin Yenmez, 2019. "Constitutional Implementation of Vertical and Horizontal Reservations in India: A Unified Mechanism for Civil Service Allocation and College Admissions," Boston College Working Papers in Economics 978, Boston College Department of Economics.
    14. Aygün, Orhan & Turhan, Bertan, 2019. "Matching with Generalized Lexicographic Choice Rules," ISU General Staff Papers 20191101070000, Iowa State University, Department of Economics.
    15. Aygün, Orhan & Turhan, Bertan, 2021. "How to De-reserve Reserves," ISU General Staff Papers 202104130700001123, Iowa State University, Department of Economics.
    16. Tayfun Sönmez & M. Bumin Yenmez, 2019. "Can Economic Theory be Informative for the Judiciary? Affirmative Action in India via Vertical and Horizontal Reservations," Boston College Working Papers in Economics 1026, Boston College Department of Economics, revised 23 Jun 2021.
    17. Alva, Samson, 2018. "WARP and combinatorial choice," Journal of Economic Theory, Elsevier, vol. 173(C), pages 320-333.
    18. Parag A. Pathak & Alex Rees-Jones & Tayfun Sönmez, 2020. "Immigration Lottery Design: Engineered and Coincidental Consequences of H-1B Reforms," NBER Working Papers 26767, National Bureau of Economic Research, Inc.
    19. Ehlers, Lars & Hafalir, Isa E. & Yenmez, M. Bumin & Yildirim, Muhammed A., 2014. "School choice with controlled choice constraints: Hard bounds versus soft bounds," Journal of Economic Theory, Elsevier, vol. 153(C), pages 648-683.
    20. Kominers, Scott Duke & Sönmez, Tayfun, 2016. "Matching with slot-specific priorities: theory," Theoretical Economics, Econometric Society, vol. 11(2), May.

    More about this item

    Keywords

    College admissions; Many-to-many matching; Path independence; Substitutability; Modification; Law of aggregate demand;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jetheo:v:176:y:2018:i:c:p:859-885. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/622869 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.