Not quite the best response: truth-telling, strategy-proof matching, and the manipulation of others

A-Tier
Journal: Experimental Economics
Year: 2017
Volume: 20
Issue: 3
Pages: 670-686

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Abstract Following the advice of economists, school choice programs around the world have lately been adopting strategy-proof mechanisms. However, experimental evidence presents a high variation of truth-telling rates for strategy-proof mechanisms. We crash test the connection between the strategy-proofness of the mechanism and truth-telling. We employ a within-subjects design by making subjects take two simultaneous decisions: one with no strategic uncertainty and one with some uncertainty and partial information about the strategies of other players. We find that providing information about the out-of-equilibrium strategies played by others has a negative and significant effect on truth-telling rates. That is, most participants in our within-subjects design try and fail to best-respond to changes in the environment. We also find that more sophisticated subjects are more likely to play the dominant strategy (truth-telling) across all the treatments. These results have potentially important implications for the design of markets based on strategy-proof matching mechanisms.

Technical Details

RePEc Handle
repec:kap:expeco:v:20:y:2017:i:3:d:10.1007_s10683-016-9505-0
Journal Field
Experimental
Author Count
2
Added to Database
2026-01-25