Assignment mechanisms: Common preferences and information acquisition

A-Tier
Journal: Journal of Economic Theory
Year: 2021
Volume: 198
Issue: C

Score contribution per author:

4.022 = (α=2.01 / 1 authors) × 2.0x A-tier

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

Abstract

I study costly information acquisition in a two-sided matching problem, such as matching applicants to schools. An applicant's utility is a sum of common and idiosyncratic components. The idiosyncratic component is unknown to the applicant but can be learned at a cost. As applicants learn, their preferences over schools become more heterogeneous, improving match quality. In my stylized environment, too few applicants acquire information in an ordinal strategy-proof mechanism. Subsidies, disclosure of applicants' priorities, and affirmative action-like policies lead to higher information acquisition and Pareto improvements. Learning may also decrease when an ordinal strategy-proof mechanism replaces an Immediate Acceptance mechanism.

Technical Details

RePEc Handle
repec:eee:jetheo:v:198:y:2021:i:c:s0022053121001873
Journal Field
Theory
Author Count
1
Added to Database
2026-01-24