Deduction Dilemmas: The Taiwan Assignment Mechanism

This paper analyzes the Taiwan mechanism used nationwide for high school assignment starting in 2014. In mechanism, points are deducted from an applicant’s score, with larger penalties lower-ranked choices. Deduction makes a hybrid of Boston and deferred acceptance mechanisms. Our analysis sheds light on why Taiwan’s new has led to massive demonstrations it nonetheless remains use. (JEL D47, I21, I28)