American Economic Review Vol. 107 No. 5 2017
Mistaken Play in the Deferred Acceptance Algorithm: Implications for Positive Assortative Matching
Abstract
Recent literature has documented failures of truthful preference reporting in the strategy-proof deferred acceptance algorithm. I consider the implications of these strategic mistakes for a common welfare consideration: the ability of the mechanism to sort the best students to the best schools. I find that these mistakes have the potential to significantly help or significantly hinder sorting. Through this channel, the presence of mistaken play may have widely varying welfare effects. I discuss related considerations in the welfare evaluation of mistaken play in the deferred acceptance algorithm and the implications for “nudges” that correct these mistakes.
- DOI
- 10.1257/aer.p20171028
- Volume
- 107
- Issue
- 5
- Pages
- 225-229
- Language
- en
- Sources
- openalex crossref