Feature-based Uncertainty Model for School Choice
Yao Zhang, Makoto Yokoo
TL;DR
This work studies school choice under feature-based uncertainty, where a student’s ranking of colleges is a weighted sum $\sum_{f\in F} w_s^f u_s^f(c)$ with $w_s\sim\mu_s$ and deterministic college preferences. It develops a generalized deferred acceptance framework and four proposing rules—HEUF, LOCV, LOICV, and HERF—to balance stability probability (ProS) and incentive compatibility (IC), and derives fundamental complexity and impossibility results. The key findings show that maximizing ProS is NP-hard, IC-A is unattainable in general, and among the four methods, HERF achieves the best worst-case ProS (a $$(1/n)^n$$-approximation), while the others have zero worst-case guarantees; LOICV achieves IC-R for $|F|=2$, with tighter limitations for larger feature sets. For the tractable case $|F|=2$, ProS can be computed in polynomial time, whereas for $|F|\ge3$ computing ProS becomes #P-hard and several IC properties break down, motivating practical approximations and future work on data-driven uncertainty estimation and information design.
Abstract
In this work, we consider a school choice scenario where a student does not exactly know which college is better for her. Although it is hard for a student to obtain an exact preference, she can usually compare specific features of colleges, such as reputation, location, and campus facilities. Motivated by this, we propose a feature-based uncertainty model for school choice where a student's preference is based on a linear combination of her utilities over different features, and the coefficients of the combination are treated as random variables. Our main goal is to achieve a higher probability of stability (ProS) and incentive compatibility (IC) for students. Unfortunately, these two goals are incompatible in general. We show that a student-proposing deferred acceptance (DA) that prioritizes colleges with higher expected ranking can achieve a worst-case approximation ratio of $(1/n)^n$ on ProS, while a DA with a carefully defined iterated comparison vector can guarantee the strongest achievable form of IC. Finally, we provide additional results for some specific restrictions on the model.
