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Preference Discovery in University Admissions: The Case for Dynamic Multioffer Mechanisms

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  • Julien Grenet

    (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Yinghua He

    (Rice University [Houston], TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Dorothea Kübler

    (WZB - Social Science Research Center Berlin - Social Science Research Center Berlin, TUB - Technical University of Berlin / Technische Universität Berlin)

Abstract

We document quasi-experimental evidence against the common assumption in the matching literature that agents have full information on their own preferences. In Germany's university admissions, the first stages of the Gale-Shapley algorithm are implemented in real time, allowing for multiple offers per student. We demonstrate that nonexploding early offers are accepted more often than later offers, despite not being more desirable. These results, together with survey evidence and a theoretical model, are consistent with students' costly discovery of preferences. A novel dynamic multioffer mechanism that batches early offers improves matching efficiency by informing students of offer availability before preference discovery.

Suggested Citation

  • Julien Grenet & Yinghua He & Dorothea Kübler, 2022. "Preference Discovery in University Admissions: The Case for Dynamic Multioffer Mechanisms," PSE Working Papers halshs-02146792, HAL.
    • Handle: RePEc:hal:psewpa:halshs-02146792
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-02146792v3
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    References listed on IDEAS

    as
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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. Rustamdjan Hakimov & Dorothea Kübler & Siqi Pan, 2023. "Costly information acquisition in centralized matching markets," Quantitative Economics, Econometric Society, vol. 14(4), pages 1447-1490, November.
    3. Julien Grenet & YingHua He & Dorothea Kübler, 2022. "Preference Discovery in University Admissions: The Case for Dynamic Multioffer Mechanisms," Journal of Political Economy, University of Chicago Press, vol. 130(6), pages 1427-1476.
    4. Li Chen & Juan S. Pereyra & Min Zhu, 2022. "Time-constrained Dynamic Mechanisms for College Admissions," Papers 2207.12179, arXiv.org.
    5. Pablo Guillen & Rami Tabri & Edward Wang, 2024. "Matching with batches," Working Papers 2024-13, University of Sydney, School of Economics.
    6. Bnaya Dreyfuss & Ofer Glicksohn & Ori Heffetz & Assaf Romm, 2022. "Deferred Acceptance with News Utility," NBER Working Papers 30635, National Bureau of Economic Research, Inc.
    7. Rustamdjan Hakimov & Madhav Raghavan, 2023. "Improving Transparency and Verifiability in School Admissions: Theory and Experiment," Rationality and Competition Discussion Paper Series 376, CRC TRR 190 Rationality and Competition.
    8. Estelle Cantillon & Li Chen & Juan Sebastian Pereyra Barreiro, 2022. "Respecting priorities versus respecting preferences in school choice: When is there a trade-off ?," Working Papers ECARES 2022-39, ULB -- Universite Libre de Bruxelles.
    9. 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).
    10. Giesing, Yvonne & Kauder, Björn & Mergele, Lukas & Potrafke, Niklas & Poutvaara, Panu, 2024. "Moving Out of the Comfort Zone: How Cultural Norms Affect Attitudes toward Immigration," IZA Discussion Papers 16833, Institute of Labor Economics (IZA).
    11. Rosmer, Paul, 2024. "A Comment on "Preference Discovery in University Admissions: The Case for Dynamic Multioffer Mechanisms"," I4R Discussion Paper Series 166, The Institute for Replication (I4R).

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    More about this item

    Keywords

    Centralized Matching Market; Gale-Shapley Deferred Acceptance; Mechanism; University Admissions; Early Offers; Information Acquisition;
    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
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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