Quota Adjustment Process

Taro Kumano and Morimitsu Kurino
Additional contact information
Taro Kumano: Yokohama National University, Department of Economics
Morimitsu Kurino: Keio University, Faculty of Economics

No 2022-016, Keio-IES Discussion Paper Series from Institute for Economics Studies, Keio University

Abstract: In designing priority-based matching problems, such as school choice, the quota of each school is, to some extent, a design variable for a market designer. We define an ex-post student-optimal stable matching (ESOSM) as a matching that is stable at some implementable quota distribution, and is not Pareto dominated by any stable matching among all implementable quota distributions. A simple question is whether the total resources subject to several constraints are optimally distributed in the above sense. As optimal quota distributions vary depending on students�f preferences realized, no predetermined quota distribution is optimal for all of the students�f preferences. This requires a new matching mechanism design for the variable quota distributions. We propose the novel mechanism called quota adjustment process (QAP), which endogenously finds an ESOSM and the corresponding optimal quota distribution for any preferences and any initial quota distribution. To put this into practice, we proposed the QAP in the process of admission reform at the University of Tsukuba in Japan. Our proposal was officially approved and implemented at the University of Tsukuba in 2021.

Keywords: quota adjustment process; stability; deferred acceptance mechanism; effciency; quota-adjustment stable improvement cycles (search for similar items in EconPapers)
JEL-codes: C78 D47 D78 I21 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2022-11-22
New Economics Papers: this item is included in nep-des and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://ies.keio.ac.jp/upload/DP2022-016_EN.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:keo:dpaper:2022-016

Access Statistics for this paper

More papers in Keio-IES Discussion Paper Series from Institute for Economics Studies, Keio University Contact information at EDIRC.
Bibliographic data for series maintained by Institute for Economics Studies, Keio University ().