Re-reforming the Bostonian system: a novel approach to the schooling problem

Abstract

This paper proposes the notion of ε-stability to conciliate Pareto efciency and fairness. We propose the use of a centralized procedure, the Exchanging Places Mechanism. It endows students a position according with the Gale and Shapley students optimal stable matching as tentative allocation and allows the student to trade their positions. We show that the final allocation is "ε-stable, i.e. efficient, fair and immune to any justifiable objection that students can formulate.