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What's the Matter with Tie-Breaking? Improving Efficiency in School Choice

Aytek Erdil and Haluk Ergin

American Economic Review, 2008, vol. 98, issue 3, 669-89

Abstract: In several school choice districts in the United States, the student proposing deferred acceptance algorithm is applied after indifferences in priority orders are broken in some exogenous way. Although such a tie-breaking procedure preserves stability, it adversely affects the welfare of the students since it introduces artificial stability constraints. Our main finding is a polynomial-time algorithm for the computation of a student-optimal stable matching when priorities are weak. The idea behind our construction relies on a new notion which we call a stable improvement cycle. We also investigate the strategic properties of the student-optimal stable mechanism.

JEL-codes: H75 I21 I28 (search for similar items in EconPapers)
Date: 2008
Note: DOI: 10.1257/aer.98.3.669
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Citations: View citations in EconPapers (190)

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