NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

NBER Working Papers by Paulo J. Somaini

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Working Papers

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 preferences in Cambridge, MA respond to these incentives. Such strategizing can complicate the analysis of preferences. The paper develops a new method for estimating preferences 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. We then study identification of a latent utility preference model under the assumption that agents play a Bayesian Nash Equilibrium. Preferences are non-parametrically identified under either sufficient variat...

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