Scholars@Duke

Efficiency, Justified Envy, and Incentives in Priority-Based Matching

Publication ,  Journal Article
Abdulkadiroǧlu, A; Che, Y-K; Pathak, PA; Roth, AE; Tercieux, O
Published in: American Economic Review: Insights
December 1, 2020
Published version (DOI) Publisher Link

Top trading cycles (TTC) is Pareto efficient and strategy-proof in priority-based matching, but so are other mechanisms including serial dictatorship. We show that TTC minimizes justified envy among all Pareto-efficient and strategy-proof mechanisms in one-to-one matching. In many-to-one matching, TTC admits less justified envy than serial dictatorship in an average sense. Empirical evidence from New Orleans OneApp and Boston Public Schools shows that TTC has significantly less justified envy than serial dictatorship. (JEL C78, D61)

Duke Scholars

Atila Abdulkadiroglu
Author Atila Abdulkadiroglu Economics
Altmetric Attention Stats
Dimensions Citation Stats

Published In

American Economic Review: Insights

DOI

10.1257/aeri.20190307

EISSN

2640-2068

ISSN

2640-205X

Publication Date

December 1, 2020

Volume

2

Issue

4

Start / End Page

425 / 442

Publisher

American Economic Association

Related Subject Headings

  • 3803 Economic theory
  • 3802 Econometrics
  • 3801 Applied economics
 

Citation

APA
Chicago
ICMJE
MLA
NLM
Abdulkadiroǧlu, A., Che, Y.-K., Pathak, P. A., Roth, A. E., & Tercieux, O. (2020). Efficiency, Justified Envy, and Incentives in Priority-Based Matching. American Economic Review: Insights, 2(4), 425–442. https://doi.org/10.1257/aeri.20190307
Abdulkadiroǧlu, Atila, Yeon-Koo Che, Parag A. Pathak, Alvin E. Roth, and Olivier Tercieux. “Efficiency, Justified Envy, and Incentives in Priority-Based Matching.” American Economic Review: Insights 2, no. 4 (December 1, 2020): 425–42. https://doi.org/10.1257/aeri.20190307.
Abdulkadiroǧlu A, Che Y-K, Pathak PA, Roth AE, Tercieux O. Efficiency, Justified Envy, and Incentives in Priority-Based Matching. American Economic Review: Insights. 2020 Dec 1;2(4):425–42.
Abdulkadiroǧlu, Atila, et al. “Efficiency, Justified Envy, and Incentives in Priority-Based Matching.” American Economic Review: Insights, vol. 2, no. 4, American Economic Association, Dec. 2020, pp. 425–42. Crossref, doi:10.1257/aeri.20190307.
Abdulkadiroǧlu A, Che Y-K, Pathak PA, Roth AE, Tercieux O. Efficiency, Justified Envy, and Incentives in Priority-Based Matching. American Economic Review: Insights. American Economic Association; 2020 Dec 1;2(4):425–442.

Published In

American Economic Review: Insights

DOI

10.1257/aeri.20190307

EISSN

2640-2068

ISSN

2640-205X

Publication Date

December 1, 2020

Volume

2

Issue

4

Start / End Page

425 / 442

Publisher

American Economic Association

Related Subject Headings

  • 3803 Economic theory
  • 3802 Econometrics
  • 3801 Applied economics