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Cognitive ability and games of school choice

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  • Basteck, Christian
  • Mantovani, Marco
Abstract
We take school admission mechanisms to the lab to test whether the widely-used manipulable Boston-mechanism disadvantages students of lower cognitive ability and whether this leads to ability segregation across schools. Results show this is the case: lower ability participants receive lower payoffs and are over-represented at the worst school. Under the strategy-proof Deferred Acceptance mechanism, payoff differences are reduced, and ability distributions across schools harmonized. Hence, we find support for the argument that a strategy-proof mechanisms 'levels the playing-field'. Finally, we document a trade-off between equity and efficiency in that average payoffs are larger under Boston than under Deferred Acceptance.

Suggested Citation

  • Basteck, Christian & Mantovani, Marco, 2016. "Cognitive ability and games of school choice," SFB 649 Discussion Papers 2016-037, Humboldt University Berlin, Collaborative Research Center 649: Economic Risk.
    • Handle: RePEc:zbw:sfb649:sfb649dp2016-037
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    References listed on IDEAS

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    More about this item

    Keywords

    laboratory experiment; school choice; strategy-proofness; cognitive ability; mechanism design;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality

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