Using Theory, Markets and Experimental Methods to Improve a Complex Administrative Decision Process: School Transportation for Disadvantaged Students
Abstract
The paper studies structural inefficiencies of administrative decisions demonstrated in an example from the growing government service sector. The provision of school transportation to disadvantaged children touches social concerns and regulations related to classical conditions of limited competition. The decision process is partitioned into key economic functions related to the challenges faced by the government when dealing with environments in which theory predicts market failures. Theories drawn from public choice theory and theories of auctions suggest policy changes that were experimentally tested in the challenging environment. Field data demonstrate the new processes produced improved allocations. Subsequent laboratory tests demonstrate the success can be attributed to the principles used in the theory and demonstrate a robust link connecting efficient behaviors observed in laboratory experiments and behaviors found in field events.
Additional Information
The financial support of The Rising Tide Foundation and The John Templeton Foundation are gratefully acknowledged. The tireless efforts of governmental and educational personnel who enthusiastically supplied their vast knowledge of institutional details of the problems faced by children, families, and institutions dedicated to improving the lives of disadvantaged students must be acknowledged and admired. Special acknowledgement is extended to Han Seo for his contribution to the route logistics model. The technical support of the Caltech Laboratory for Experimental Economics and Political Science made the project possible as was the assistance of Jacqueline Lodman. The auction implementation team consisting of David Brooks, Veronika Nemes and Amy Corman from the University of Melbourne are acknowledged for their assistance in preparing for and hosting the auction event.Attached Files
Accepted Version - sswp1448.pdf
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Additional details
- Eprint ID
- 113342
- Resolver ID
- CaltechAUTHORS:20220209-170304115
- Rising Tide Foundation
- John Templeton Foundation
- Created
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2022-02-09Created from EPrint's datestamp field
- Updated
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2022-02-09Created from EPrint's last_modified field
- Caltech groups
- Social Science Working Papers
- Series Name
- Social Science Working Paper
- Series Volume or Issue Number
- 1448