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Josué Ortega

Publications and source records attributed to Josué Ortega.

6 recordsLinked to original sources

Justifiable Priority Violations

Making Deferred Acceptance more efficient requires priority violations, but which ones are justifiable? We argue that a priority can be justifiably violated if the affected student either (i) directly benefits from the improvement that caused said violation, or (ii) is unimprovable under any assignment that Pareto-dominates DA. We construct a ``just-below-cutoffs'' mechanism that always finds a justifiable DA-improvement whenever DA's outcome is inefficient, and build on it to construct an algorithm that expands justifiable improvements iteratively, converging to a matching that cannot be Pareto-improved by any justifiable outcome. Finally, we prove that both justifiability and consent frameworks have important limitations in reaching Pareto-efficient outcomes, and use data and simulations to quantify how binding these constraints are in practice.

econ.TH↗

School Choice with Appeals

Roughly fifty thousand families in England appeal their school assignments each year through a centralized and understudied procedure that improves the placement of about one in five claimants. This paper shows that appeals are not an institutional afterthought: they change how parents report preferences to the education authority and the quality of placements it generates. Once the appeal stage is incorporated, Immediate Acceptance (IA) becomes less manipulable and can support equilibrium outcomes that Pareto dominate those of Deferred Acceptance (DA) under truth-telling, reversing the DA-IA welfare comparison. In a preregistered experiment, we find results consistent with the theoretical predictions: appeals increase truth-telling in IA, leaving DA essentially unchanged, and widen the IA-DA efficiency gap. Around 60% of the IA efficiency gain appears before any appeal is upheld, because subjects anticipating the possibility of a potential appeal rank schools differently.

econ.TH↗

Experimental School Choice with Parents

We conduct the first laboratory school choice experiment in which parents-the relevant decision makers in the field-are the experimental subjects. We compare Deferred Acceptance (DA) with two manipulable but potentially more efficient alternatives: Efficiency-Adjusted Deferred Acceptance (EADA) and the Rank-Minimizing mechanism (RM). We find that all mechanisms are frequently manipulated, with no significant differences in truth-telling rates. Parents and students manipulate at similar rates, supporting the external validity of student-based experiments, though students make significantly more obvious errors, suggesting parents' deviations are more deliberate. Despite widespread manipulation, the predicted welfare-stability tradeoff largely survives: DA never produces Pareto-efficient allocations yet generates little justified envy; whereas RM delivers substantial efficiency gains at a meaningful stability cost. EADA occupies a middle ground: its efficiency gains over DA are modest and imprecisely estimated yet double justified envy. Higher cognitive ability is associated with more deviations, and under EADA with worse outcomes. While DA does not induce truth-telling, it is the only mechanism in which manipulation never pays off and rarely changes outcomes.

econ.GN↗

The Distribution of Envy in Matching Markets

We study the distribution of envy in random matching markets under the Deferred Acceptance (DA) algorithm. Using tools from applied probability, we compute the expected number of proposing agents whom nobody envies and those who envy nobody. We obtain an exact finite-market expression for the former, based on a connection with the coupon collector problem, and asymptotic bounds for the latter. To put these quantities into perspective, we compare them to their counterparts under Random Serial Dictatorship (RSD): while RSD assigns a constant fraction of agents to their top choice, both DA and RSD leave exactly $H_n$ proposing agents unenvied in expectation. Our results show that these clearly unimprovable proposing agents constitute a vanishing fraction of the market.

econ.TH↗

Fair Cake-Cutting in Practice

Using a lab experiment, we investigate the real-life performance of envy-free and proportional cake-cutting procedures with respect to fairness and preference manipulation. We find that envy-free procedures, in particular Selfridge-Conway, are fairer and also are perceived as fairer than their proportional counterparts, despite the fact that agents very often manipulate them. Our results support the practical use of the celebrated Selfridge-Conway procedure, and more generally, of envy-free cake-cutting mechanisms. We also find that subjects learn their opponents' preferences after repeated interaction and use this knowledge to improve their allocated share of the cake. Learning reduces truth-telling behavior, but also reduces envy.

cs.GT↗

The Losses from Integration in Matching Markets can be Large

Although the integration of two-sided matching markets using stable mechanisms generates expected gains from integration, I show that there are worst-case scenarios in which these are negative. The losses from integration can be large enough that the average rank of an agent's spouse decreases by 37.5% of the length of their preference list in any stable matching mechanism.

econ.TH↗