NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

NBER Publications by Paulo J. Somaini

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December 2014Demand Analysis using Strategic Reports: An application to a school choice mechanism
with Nikhil Agarwal: w20775
Several school districts use assignment systems in which students have a strategic incentive to misrepresent their preferences. Indeed, we find evidence suggesting that reported rank-order lists in Cambridge, MA respond to these incentives. Such strategizing can complicate the analysis of preferences. This paper develops a new method for estimating random utility models in such environments. Our approach views the report made by a student as a choice of a probability distribution over assignment to various schools. We introduce a large class of mechanisms for which consistent estimation is feasible and study identification of a latent utility model assuming equilibrium behavior. Preferences are non-parametrically identified under either sufficient variation in choice environments or suffic...

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