| American Economic Review
Strategy-proofness versus Efficiency in Matching with Indifferences: Redesigning the NYC High School Match
The design of the New York City (NYC) High School match involved tradeoffs among efficiency, stability, and strategy-proofness that raise new theoretical questions. We analyze a model with indifferences—ties—in school preferences. Simulations with field data and the theory favor breaking indifferences the same way at every school—single tie breaking—in a student-proposing deferred acceptance mechanism. Any inefficiency associated with a realized tie breaking cannot be removed without harming student incentives. Finally, we empirically document the extent of potential efficiency loss associated with strategy-proofness and stability, and direct attention to some open questions.
Keywords: Decision Choices and Conditions;
Motivation and Incentives;
Balance and Stability;