Adam Kapor, Mohit Karnani, Christopher A. Neilson, "Aftermarket Frictions and the Cost of Off-Platform Options in Centralized Assignment Mechanisms", Journal of Political Economy (July 2024), 2024, doi: 10.1086/730207.

@article{ platforms_2024,
  title = "Aftermarket Frictions and the Cost of Off-Platform Options in Centralized Assignment Mechanisms",
  author = "Kapor, Adam and Karnani, Mohit and Neilson, Christopher A.",
  journal = "Journal of Political Economy (July 2024)",
  year = "2024",
  note = "published",
  doi = "10.1086/730207"
,
  abstract = "We study the welfare and human capital impacts of colleges' (non)participation in Chile's centralized higher-education platform, leveraging administrative data and two policy changes: the introduction of a large scholarship program and the inclusion of additional institutions, which raised the number of on-platform slots by approximately 40%. We first show that the expansion of the platform raised on-time graduation rates. We then develop and estimate a model of college applications, offers, wait lists, matriculation, and graduation. When the platform expands, welfare increases, and welfare, enrollment, and graduation rates are less sensitive to off-platform frictions. Gains are larger for students from lower-socioeconomic-status backgrounds."
,
  url = "https://christopherneilson.github.io//work/documents/Platforms/platform_externalities.pdf"
,
  url_article = "https://christopherneilson.github.io//work/documents/Platforms/platform_externalities.pdf"
}