IDEAS home Printed from https://ideas.repec.org/p/arx/papers/2206.15096.html
   My bibliography  Save this paper

Voluntary Information Disclosure in Centralized Matching: Efficiency Gains and Strategic Properties

Author

Listed:
  • Andreas Bjerre-Nielsen
  • Emil Chrisander

Abstract

Information frictions can harm the welfare of participants in two-sided matching markets. Consider a centralized admission, where colleges cannot observe students' preparedness for success in a particular major or degree program. Colleges choose between using simple, cheap admission criteria, e.g., high school grades as a proxy for preparedness, or screening all applications, which is time-consuming for both students and colleges. To address issues of fairness and welfare, we introduce two novel mechanisms that allow students to disclose private information voluntarily and thus only require partial screening. The mechanisms are based on Deferred Acceptance and preserve its core strategic properties of credible preference revelation, particularly ordinal strategy-proofness. In addition, we demonstrate conditions for which cardinal welfare improves for market participants compared to not screening. Intuitively, students and colleges benefit from voluntary information disclosure if public information about students correlates weakly with students' private information and the cost of processing disclosed information is sufficiently low. Finally, we present empirical evidence from the Danish higher education system that supports critical features of our model. Our work has policy implications for the mechanism design of large two-sided markets where information frictions are inherent.

Suggested Citation

  • Andreas Bjerre-Nielsen & Emil Chrisander, 2022. "Voluntary Information Disclosure in Centralized Matching: Efficiency Gains and Strategic Properties," Papers 2206.15096, arXiv.org.
  • Handle: RePEc:arx:papers:2206.15096
    as

    Download full text from publisher

    File URL: http://arxiv.org/pdf/2206.15096
    File Function: Latest version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Caterina Calsamiglia & Guillaume Haeringer & Flip Klijn, 2010. "Constrained School Choice: An Experimental Study," American Economic Review, American Economic Association, vol. 100(4), pages 1860-1874, September.
    2. Gabrielle Fack & Julien Grenet & Yinghua He, 2019. "Beyond Truth-Telling: Preference Estimation with Centralized School Choice and College Admissions," American Economic Review, American Economic Association, vol. 109(4), pages 1486-1529, April.
    3. Gabrielle Fack & Julien Grenet & Yinghua He, 2019. "Beyond Truth-Telling: Preference Estimation with Centralized School Choice and College Admissions," American Economic Review, American Economic Association, vol. 109(4), pages 1486-1529, April.
    4. Heidrun C. Hoppe & Benny Moldovanu & Aner Sela, 2009. "The Theory of Assortative Matching Based on Costly Signals," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 76(1), pages 253-281.
    5. , & , J. & ,, 2011. "Von Neumann-Morgenstern farsightedly stable sets in two-sided matching," Theoretical Economics, Econometric Society, vol. 6(3), 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. YingHua He & Thierry Magnac, 2022. "Application Costs and Congestion in Matching Markets," The Economic Journal, Royal Economic Society, vol. 132(648), pages 2918-2950.
    8. Peter Coles & Alexey Kushnir & Muriel Niederle, 2013. "Preference Signaling in Matching Markets," American Economic Journal: Microeconomics, American Economic Association, vol. 5(2), pages 99-134, May.
    9. Eduardo M. Azevedo & Jacob D. Leshno, 2016. "A Supply and Demand Framework for Two-Sided Matching Markets," Journal of Political Economy, University of Chicago Press, vol. 124(5), pages 1235-1268.
    10. Yan Chen & Onur Kesten, 2017. "Chinese College Admissions and School Choice Reforms: A Theoretical Analysis," Journal of Political Economy, University of Chicago Press, vol. 125(1), pages 99-139.
    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. Andreas Bjerre-Nielsen & Lykke Sterll Christensen & Mikkel H{o}st Gandil & Hans Henrik Sievertsen, 2023. "Playing the system: address manipulation and access to schools," Papers 2305.18949, arXiv.org.
    2. Bjerre-Nielsen, Andreas & Christensen, Lykke Sterll & Gandil, Mikkel Høst & Sievertsen, Hans Henrik, 2023. "Playing the System: Address Manipulation and Access to Schools," IZA Discussion Papers 16197, Institute of Labor Economics (IZA).

    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. YingHua He & Thierry Magnac, 2022. "Application Costs and Congestion in Matching Markets," The Economic Journal, Royal Economic Society, vol. 132(648), pages 2918-2950.
    2. Hayri A. Arslan, 2021. "Preference estimation in centralized college admissions from reported lists," Empirical Economics, Springer, vol. 61(5), pages 2865-2911, November.
    3. Aue, Robert & Klein, Thilo & Ortega, Josué, 2020. "What Happens when Separate and Unequal School Districts Merge?," QBS Working Paper Series 2020/06, Queen's University Belfast, Queen's Business School.
    4. Thierry Magnac, 2018. "Quels étudiants pour quelles universités ? Analyses empiriques de mécanismes d’allocation centralisée," Revue économique, Presses de Sciences-Po, vol. 69(5), pages 683-708.
    5. Li, Mengling, 2020. "Ties matter: Improving efficiency in course allocation by allowing ties," Journal of Economic Behavior & Organization, Elsevier, vol. 178(C), pages 354-384.
    6. Thilo Klein & Robert Aue & Josue Ortega, 2020. "School choice with independent versus consolidated districts," Papers 2006.13209, arXiv.org, revised Jul 2024.
    7. Carvalho, José-Raimundo & Magnac, Thierry & Xiong, Qizhou, 2016. "College Choice and the Selection of Mechanisms: A Structural Empirical Analysis," IWH Discussion Papers 3/2016, Halle Institute for Economic Research (IWH).
    8. Tong Wang & Congyi Zhou, 2020. "High school admission reform in China: a welfare analysis," Review of Economic Design, Springer;Society for Economic Design, vol. 24(3), pages 215-269, December.
    9. He, Yinghua & Magnac, Thierry, 2018. "A Pigouvian Approach to Congestion in Matching Markets," IZA Discussion Papers 11967, Institute of Labor Economics (IZA).
    10. Ha, Wei & Kang, Le & Song, Yang, 2020. "College matching mechanisms and matching stability: Evidence from a natural experiment in China," Journal of Economic Behavior & Organization, Elsevier, vol. 175(C), pages 206-226.
    11. Afacan, Mustafa Oğuz & Dur, Umut & Van der Linden, Martin, 2024. "Capacity design in school choice," Games and Economic Behavior, Elsevier, vol. 146(C), pages 277-291.
    12. Somouaoga Bonkoungou, 2021. "Decentralized college admissions under single application," Review of Economic Design, Springer;Society for Economic Design, vol. 25(1), pages 65-91, June.
    13. Bonkoungou, Somouaoga & Nesterov, Alexander, 2023. "Incentives in matching markets: counting and comparing manipulating agents," Theoretical Economics, Econometric Society, vol. 18(3), July.
    14. Abdulkadiroglu, Atila & Andersson, Tommy, 2022. "School Choice," Working Papers 2022:4, Lund University, Department of Economics.
    15. Aue, Robert & Bach, Maximilian & Heigle, Julia & Klein, Thilo & Pfeiffer, Friedhelm & Zapp, Kristina, 2020. "The implication of school admission rules for segregation and educational inequality: Research report," ZEW Expertises, ZEW - Leibniz Centre for European Economic Research, number 223254.
    16. Gandil, Mikkel Høst, 2021. "Substitution Effects in College Admissions," Memorandum 3/2021, Oslo University, Department of Economics.
    17. Emil Chrisander & Andreas Bjerre-Nielsen, 2023. "Why Do Students Lie and Should We Worry? An Analysis of Non-truthful Reporting," Papers 2302.13718, arXiv.org, revised Mar 2023.
    18. Schwartz, Jacob & Song, Kyungchul, 2024. "The law of large numbers for large stable matchings," Journal of Econometrics, Elsevier, vol. 241(1).
    19. Klijn, Flip & Pais, Joana & Vorsatz, Marc, 2019. "Static versus dynamic deferred acceptance in school choice: Theory and experiment," Games and Economic Behavior, Elsevier, vol. 113(C), pages 147-163.
    20. TANAKA Mari & NARITA Yusuke & MORIGUCHI Chiaki, 2020. "Meritocracy and Its Discontent: Long-run Effects of Repeated School Admission Reforms," Discussion papers 20002, Research Institute of Economy, Trade and Industry (RIETI).

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:arx:papers:2206.15096. 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: arXiv administrators (email available below). General contact details of provider: http://arxiv.org/ .

    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.