scholarly journals Smart Matching Platforms and Heterogeneous Beliefs in Centralized School Choice

2021 ◽  
Author(s):  
Felipe Arteaga ◽  
Adam Kapor ◽  
Christopher Neilson ◽  
Seth D. Zimmerman
Keyword(s):  
School Choice ◽  
Heterogeneous Beliefs

scholarly journals Heterogeneous Beliefs and School Choice Mechanisms

2020 ◽  
Vol 110 (5) ◽  
pp. 1274-1315 ◽  
Author(s):  
Adam J. Kapor ◽  
Christopher A. Neilson ◽  
Seth D. Zimmerman
Keyword(s):  
School Choice ◽  
Rational Expectations ◽  
Choice Behavior ◽  
Heterogeneous Beliefs ◽  
Welfare Costs ◽  
Subjective Beliefs ◽  
Opposite Conclusion ◽  
Deferred Acceptance Algorithm ◽  
Deferred Acceptance ◽  
Strategy Proof

This paper studies how welfare outcomes in centralized school choice depend on the assignment mechanism when participants are not fully informed. Using a survey of school choice participants in a strategic setting, we show that beliefs about admissions chances differ from rational expectations values and predict choice behavior. To quantify the welfare costs of belief errors, we estimate a model of school choice that incorporates subjective beliefs. We evaluate the equilibrium effects of switching to a strategy-proof deferred acceptance algorithm, and of improving households’ belief accuracy. We find that a switch to truthful reporting in the DA mechanism offers welfare improvements over the baseline given the belief errors we observe in the data, but that an analyst who assumed families had accurate beliefs would have reached the opposite conclusion. (JEL D83, H75, I21, I28)

scholarly journals Smart Matching Platforms and Heterogeneous Beliefs in Centralized School Choice

2021 ◽  
Author(s):  
Felipe Arteaga ◽  
Adam Kapor ◽  
Christopher Neilson ◽  
Seth Zimmerman
Keyword(s):  
School Choice ◽  
Heterogeneous Beliefs

scholarly journals Heterogeneous Beliefs and School Choice Mechanisms

2018 ◽  
Author(s):  
Adam Kapor ◽  
Christopher Neilson ◽  
Seth Zimmerman
Keyword(s):  
School Choice ◽  
Heterogeneous Beliefs
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