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12 - Chatting and Matching

from Part V - Advice and Economic Mechanisms

Published online by Cambridge University Press:  09 March 2023

Andrew Schotter
Affiliation:
New York University
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Summary

In recent years there has been a great deal of interest in designing matching mechanisms that can be used to match public school students to schools (the student matching problem). The premise of this chapter is that, when testing mechanisms, we must do so in the environment in which they are used in the real world rather than in the environment envisioned by theory. More precisely, in theory, the school matching problem is a static one-shot game played by parents of children seeking places in a finite number of schools and played non-cooperatively without any form of communication or commitment between parents. However, in the real world, the school choice program is played out in a different manner. Typically, parents choose their strategies after consulting with other parents in their social networks and exchanging advice on both the quality of schools and the proper way they should play the “school matching game”. The question we ask here is whether chat between parents affects the strategies they choose, and if so, whether it does so in a welfare-increasing or welfare-decreasing manner. We find that advice received by chatting has proven to have a very powerful influence on decision makers, in the sense that advice tends not only to be followed but typically has a welfare-increasing consequence.

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Publisher: Cambridge University Press
Print publication year: 2023

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  • Chatting and Matching
  • Andrew Schotter, New York University
  • Book: Advice, Social Learning and the Evolution of Conventions
  • Online publication: 09 March 2023
  • Chapter DOI: https://doi.org/10.1017/9781009049092.018
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  • Chatting and Matching
  • Andrew Schotter, New York University
  • Book: Advice, Social Learning and the Evolution of Conventions
  • Online publication: 09 March 2023
  • Chapter DOI: https://doi.org/10.1017/9781009049092.018
Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

  • Chatting and Matching
  • Andrew Schotter, New York University
  • Book: Advice, Social Learning and the Evolution of Conventions
  • Online publication: 09 March 2023
  • Chapter DOI: https://doi.org/10.1017/9781009049092.018
Available formats
×