Seminario: Jorge Alcalde-Unzu (Universidad Pública de Navarra)

Lun, 06/02/2023 - 10:17
Salón de conferencias de la Escuela Técnica Superior de Ingeniería de Caminos, Canales y Puertos. Cuenta con un atril con micrófonos y mesas con asientos para el público.

Título: Constrained School Choice: An Experimental QRE Analysis

Sala: E28

Hora: 12:30

Abstract: The theoretical literature on public school choice proposes centralized mechanisms that assign children to schools on the basis of parents’ preferences and the priorities children have for different schools. The related experimental literature analyzes in detail how various mechanisms fare in terms of welfare and stability of the resulting matchings, yet often provides only aggregate statistics of the individual behavior that leads to these outcomes (i.e., the degree to which subjects tell the truth in the induced simultaneous move game). In this paper, we show that the quantal response equilibrium (QRE) adequately describes individual behavior and the resulting matching in three constrained problems for which the immediate acceptance mechanism and the student-optimal stable mechanism coincide. Specifically, the comparative statics of the logit-QRE with risk-neutral and expected-payoff-maximizing agents capture the directional changes of subject behavior and the prevalence of the different stable matchings when cardinal payoffs (i.e., relative preference intensities) are modified in the experiment.