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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 examines the impact of application fees on student strategies within the deferred acceptance mechanism. We demonstrate that these fees can lead to Pareto-efficient allocations. However, they may also inhibit the existence of Nash equilibria that would result in assignments Pareto-dominating the student-optimal stable assignment. This issue always arises 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-04630065v1
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