Rodríguez Álvarez, CarmeloRomero-Medina, Antonio2024-05-072024-05-072024-01Rodríguez-Álvarez, C., & Romero-Medina, A. (2024). School choice with transferable student characteristics. Games and Economic Behavior, 143, 103-124. doi:10.1016/j.geb.2023.11.0070899-825610.1016/j.geb.2023.11.007https://hdl.handle.net/20.500.14352/103782We thank José Alcalde, Julien Combe, Tayfun Sönmez, Matteo Triossi, and specially two anonymous reviewers and the Associate Editor for helpful comments and suggestions. Rodríguez-Álvarez thanks the financial support from Fundación Ramón Areces and Ministerio de Economía y Competitividad grants ECO2016-76818 and PID2019-107161GB-C32. Romero-Medina thanks financial support from Ministerio de Economía y Competitividad grants ECO2017-87769-P, MDM 2014-043, Ministerio de Ciencia e Innovación grant CEX2021-001181-M, and Comunidad de Madrid grants EPUC3M11 (V PRICIT) and H2019/HUM-5891. Both authors thank financial support from Ministerio de Ciencia e Innovación grant AEI PID2020-118022GB-I0. Rodríguez-Álvarez is grateful for the hospitality of the Departments of Economics at Boston College and Universidad Carlos III de Madrid.We consider school choice problems where school priorities depend on transferable student characteristics. Fair Pareto improvements can alleviate the trade-off between efficiency and stability in this framework. A group of students may improve their outcomes by exchanging their seats and transferable characteristics at the schools they are initially assigned without generating justified envy among the remaining students. We define the student exchange with transferable characteristics (SETC) class of algorithms. Every algorithm in the SETC class starts from an initial matching of students to schools and an initial allocation of transferable characteristics. The algorithms then propose a sequence of fair Pareto improvements until the point at which any additional efficiency gain implies a violation of the school priorities that cannot be solved with a reallocation of the transferable characteristics.engAttribution-NonCommercial-NoDerivatives 4.0 Internationalhttp://creativecommons.org/licenses/by-nc-nd/4.0/journal articlehttps://www.sciencedirect.com/science/article/pii/S0899825623001793#aep-article-footnote-id1open accessC78D61D78I20School choiceTransferable characteristicsPrioritiesConstrained efficiencyEconometría (Economía)5302 Econometría