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Local non-bossiness

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  • Eduardo Duque
  • Juan S. Pereyra
  • Juan Pablo Torres-Mart'inez

Abstract

The student-optimal stable mechanism (DA), the most popular mechanism in school choice, is the only one that is both stable and strategy-proof. However, when DA is implemented, a student can change the schools of others without changing her own. We show that this drawback is limited: a student cannot change her classmates while remaining in the same school. We refer to this new property as local non-bossiness and use it to provide a new characterization of DA that does not rely on stability. Furthermore, we show that local non-bossiness plays a crucial role in providing incentives to be truthful when students have preferences over their colleagues. As long as students first consider the school to which they are assigned and then their classmates, DA induces the only stable and strategy-proof mechanism. There is limited room to expand this preference domain without compromising the existence of a stable and strategy-proof mechanism.

Suggested Citation

  • Eduardo Duque & Juan S. Pereyra & Juan Pablo Torres-Mart'inez, 2024. "Local non-bossiness," Papers 2406.01398, arXiv.org, revised Dec 2024.
    • Handle: RePEc:arx:papers:2406.01398
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    References listed on IDEAS

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    1. Diether W Beuermann & C Kirabo Jackson & Laia Navarro-Sola & Francisco Pardo, 2023. "What is a Good School, and Can Parents Tell? Evidence on the Multidimensionality of School Output," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 90(1), pages 65-101.
    2. Echenique, Federico & Yenmez, M. Bumin, 2007. "A solution to matching with preferences over colleagues," Games and Economic Behavior, Elsevier, vol. 59(1), pages 46-71, April.
    3. , & ,, 2006. "A theory of stability in many-to-many matching markets," Theoretical Economics, Econometric Society, vol. 1(2), pages 233-273, June.
    4. 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.
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