This paper presents the first empirical evidence of interdependent values and strategic responses by market participants in a two-sided matching market. We consider the market for medical school programs in Denmark, which uses a centralized assignment mechanism. Leveraging unique administrative...

In many market-design applications, a new mechanism is introduced to reform an existing institution. Compared to the design of a mechanism in isolation, the presence of a status-quo system introduces both challenges and opportunities for the designer. We study this problem in the context of...