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Smart Matching Platforms and Heterogeneous Beliefs in Centralized School ChoiceSmart Matching Platforms and Heterogeneous Beliefs in Centralized School Choice

Author

Listed:
  • Christopher Neilson

    (Princeton University)

  • Felipe Arteaga

    (UC Berkeley)

  • Adam Kapor

    (Princeton University)

  • Seth Zimmerman

    (Yale University)

Abstract

Many school districts with centralized school choice adopt strategy proof assignment mechanisms to relieve applicants of the need to strategize on the basis of beliefs about their own admissions chances. This paper shows that beliefs about admissions chances shape choice outcomes even when the assignment mechanism is strategy proof by influencing the way applicants search for schools, and that "smart matching platforms" that provide live feedback on admissions chances help applicants search more effectively. Motivated by a model in which applicants engage in costly search for schools and over-optimism can lead to under-search, we use data from a large-scale survey of choice participants in Chile to show that learning about schools is hard, that beliefs about admissions chances guide the decision to stop searching, and that applicants systematically underestimate non-placement risk. We then use RCT and RD research designs to evaluate live feedback policies in the Chilean and New Haven choice systems. 22% of applicants submitting applications where risks of non-placement are high respond to warnings by adding schools to their lists, reducing non-placement risk by 58%. These results replicate across settings and over time. Reducing the strategic burden of school choice requires not just strategy proofness inside the centralized system, but also choice supports for the strategic decisions that inevitably remain outside of it.

Suggested Citation

  • Christopher Neilson & Felipe Arteaga & Adam Kapor & Seth Zimmerman, 2021. "Smart Matching Platforms and Heterogeneous Beliefs in Centralized School ChoiceSmart Matching Platforms and Heterogeneous Beliefs in Centralized School Choice," Working Papers 650, Princeton University, Department of Economics, Industrial Relations Section..
    • Handle: RePEc:pri:indrel:650
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    References listed on IDEAS

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    Cited by:

    1. Sarah Cohodes & Sean P. Corcoran & Jennifer Jennings & Carolyn Sattin-Bajaj, 2022. "When Do Informational Interventions Work? Experimental Evidence from New York City High School Choice," Opportunity and Inclusive Growth Institute Working Papers 057, Federal Reserve Bank of Minneapolis.
    2. Nikhil Agarwal & Eric Budish, 2021. "Market Design," NBER Working Papers 29367, National Bureau of Economic Research, Inc.
    3. Mariana Laverde, 2022. "Distance to Schools and Equal Access in School Choice Systems," Boston College Working Papers in Economics 1046, Boston College Department of Economics.
    4. Mariana Laverde, 2022. "Distance to Schools and Equal Access in School Choice Systems," Working Papers 2022-002, Human Capital and Economic Opportunity Working Group.

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    Keywords

    Chile;

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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