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Efficiency and Application Fees in School Choice

Author

Listed:
  • Cyril Rouault

    (CEPS - Centre d'Economie de l'ENS Paris-Saclay - Université Paris-Saclay - ENS Paris Saclay - Ecole Normale Supérieure Paris-Saclay)

Abstract

This paper explores the impact of application fees on student strategies within the Deferred Acceptance (DA) mechanism. We show that application fees reduce the set of Nash equilibria under DA. While they can lead to Pareto-efficient assignments, application fees may also prevent Nash equilibria that result in assignments Pareto-dominating the student-optimal stable assignment. This occurs when application fees are positive for all students at a given school.

Suggested Citation

  • Cyril Rouault, 2024. "Efficiency and Application Fees in School Choice," Working Papers hal-04630065, HAL.
    • Handle: RePEc:hal:wpaper:hal-04630065
    Note: View the original document on HAL open archive server: https://hal.science/hal-04630065v2
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