Scandinavian Working Papers in Economics

Working Papers,
Lund University, Department of Economics

No 2018:39: Sequential School Choice with Public and Private Schools

Tommy Andersson (), Umut Dur (), Sinan Ertemel () and Onur Kesten ()
Additional contact information
Tommy Andersson: Department of Economics, Lund University, Postal: Department of Economics, School of Economics and Management, Lund University, Box 7082, S-220 07 Lund, Sweden
Umut Dur: Department of Economics, North Carolina State University, Postal: Nelson Hall, 2801 Founders Drive, Raleigh, NC 27695, USA,
Sinan Ertemel: Department of Economics, Istanbul Technical University, Postal: Maçka 34367, Istanbul, Turkey
Onur Kesten: Tepper School of Business, Carnegie Mellon University, Postal: 5000 Forbes Avenue, Pittsburgh, PA 15213, USA

Abstract: Motivated by school admissions in Turkey and Sweden, we investigate a sequential two-stage admission system with public and private schools. A sequential notion of truthfulness, called straightforwardness, is introduced. Contrary to one-stage systems, sequentiality leads to a trade-off between the existence of a straightforward equilibrium and non-wastefulness. We identify the unique set of rules for two-stage systems that guarantees the existence of a straightforward equilibrium and reduces waste. Existing admission systems are analyzed within our general framework.

Keywords: market design; sequential school choice; private schools; public schools; straightforward SPNE; non-wastefulness

JEL-codes: C71; C78; D47; D71; D78; D82

Language: English

42 pages, First version: December 10, 2018. Revised: October 31, 2023.

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