Not quite the best response: truth-telling, strategy-proof matching, and the manipulation of others
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...
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| Published in | Experimental economics : a journal of the Economic Science Association Vol. 20; no. 3; pp. 670 - 686 |
|---|---|
| Main Authors | , |
| Format | Journal Article |
| Language | English |
| Published |
New York
Springer US
01.09.2017
Springer Nature B.V |
| Subjects | |
| Online Access | Get full text |
| ISSN | 1386-4157 1573-6938 |
| DOI | 10.1007/s10683-016-9505-0 |
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| 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. |
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| AbstractList | 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. |
| Author | Guillen, Pablo Hakimov, Rustamdjan |
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| Cites_doi | 10.1257/000282803322157061 10.1001/jama.2009.1388 10.3390/g4020243 10.1162/003355300554719 10.1257/089533005775196732 10.1037/h0056432 10.4300/JGME-D-11-00292.1 10.1016/j.jet.2004.10.006 10.1016/j.econlet.2006.07.002 10.1257/000282805774669637 10.1007/s11166-013-9170-z 10.3982/QE496 10.1016/j.euroecorev.2014.05.002 10.1016/j.geb.2014.02.004 10.1007/s10683-009-9230-z 10.2307/2312726 10.1111/j.1468-2354.2011.00647.x 10.1016/j.geb.2008.01.008 10.1007/s10683-012-9329-5 10.1016/j.geb.2014.06.001 10.1257/000282802762024728 10.1086/261272 10.1257/aer.89.4.748 10.2139/ssrn.2662670 10.3386/w14840 |
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| Keywords | Matching School choice Strategy-proofness Experiments Top trading cycles |
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| SubjectTerms | Behavioral/Experimental Economics Economic models Economic theory Economic Theory/Quantitative Economics/Mathematical Methods Economics Economics and Finance Economists Game Theory Manipulation Markets Microeconomics Operations Research/Decision Theory Original Paper Partial information School choice Social and Behav. Sciences Uncertainty |
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| Title | Not quite the best response: truth-telling, strategy-proof matching, and the manipulation of others |
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