Hostname: page-component-74656f9884-8r8nv Total loading time: 0 Render date: 2026-11-10T11:41:01.243Z Has data issue: false hasContentIssue false

Strategy-proofness in experimental matching markets

Published online by Cambridge University Press:  14 March 2025

Pablo Guillen*
Affiliation:
Faculty of Economics, The University of Sydney, Level 5, Room 536, A02 - Social Sciences Building, Sydney, NSW 2006, Australia
Róbert F. Veszteg*
Affiliation:
School of Political Science and Economics, Waseda University, 1-6-1 Nishiwaseda, Shinjuku-ku, Tokyo 169-8050, Japan

Abstract

We introduce two novel matching mechanisms, Reverse Top Trading Cycles (RTTC) and Reverse Deferred Acceptance (RDA), with the purpose of challenging the idea that the theoretical property of strategy-proofness induces high rates of truth-telling in economic experiments. RTTC and RDA are identical to the celebrated Top Trading Cycles (TTC) and Deferred Acceptance (DA) mechanisms, respectively, in all their theoretical properties except that their dominant-strategy equilibrium is to report one’s preferences in the order opposite to the way they were induced. With the focal truth-telling strategy being out of equilibrium, we are able to perform a clear measurement of how much of the truth-telling reported for strategy-proof mechanisms is compatible with rational behaviour and how much of it is caused by confused decision-makers following a default, focal strategy without understanding the structure of the game. In a school-allocation setting, we find that roughly half of the observed truth-telling under TTC and DA is the result of naïve (non-strategic) behaviour. Only 14–31% of the participants choose actions in RTTC and RDA that are compatible with rational behaviour. Furthermore, by looking at the responses of those seemingly rational participants in control tasks, it becomes clear that most lack a basic understanding of the incentives of the game. We argue that the use of a default option, confusion and other behavioural biases account for the vast majority of truthful play in both TTC and DA in laboratory experiments.

Information

Type
Original Paper
Copyright
Copyright © 2020 Economic Science Association

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Article purchase

Temporarily unavailable

Supplementary material: File

Guillen and Veszteg supplementary material

Guillen and Veszteg supplementary material 1
Download Guillen and Veszteg supplementary material(File)
File 91.5 KB
Supplementary material: File

Guillen and Veszteg supplementary material

Guillen and Veszteg supplementary material 2
Download Guillen and Veszteg supplementary material(File)
File 342.5 KB