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We generalize standard school choice models to allow for interdependent preferences and differentially-informed students. We show that in general, the commonly-used deferred acceptance mechanism is no longer strategy-proof, the outcome is not stable, and may make less informed students worse...
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abilities (e.g., their exam scores). The matching outcome thus may be imperfect in terms of ex-ante fairness, which suggests … matching students with higher ability to better colleges. To achieve ex-ante fairness, we consider constraining student choice … unfair matching is also increased, resulting in a riskier matching outcome. Learning the game or providing students with …
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