Working Paper: NBER ID: w28911
Authors: Kyle Greenberg; Parag A. Pathak; Tayfun Sönmez
Abstract: We present the proof-of-concept for minimalist market design (Sönmez, 2023) as an effective methodology to enhance an institution based on the desiderata of stakeholders with minimal interference. Four objectives – respecting merit, increasing retention, aligning talent, and enhancing trust – guided reforms to US Army’s centralized branching process of cadets to military specialties since 2006. USMA’s mechanism for the Class of 2020 exacerbated challenges implementing these objectives. Formulating the Army’s desiderata as rigorous axioms, we analyze their implications. Under our minimalist approach to institution redesign, the Army’s objectives uniquely identify a branching mechanism. Our design is now adopted at USMA and ROTC.
Keywords: minimalist market design; US Army; branching process; institutional reform; stakeholder objectives
JEL Codes: D47
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| minimalist market design methodology (D47) | institutional effectiveness (I24) |
| minimalist market design methodology (D47) | retention (M51) |
| minimalist market design methodology (D47) | talent alignment (M54) |
| minimalist market design methodology (D47) | trust among cadets and branches (Y80) |
| Army's objectives (L21) | suitable branching mechanism (B00) |
| suitable branching mechanism (B00) | adoption of new design at USMA and ROTC (C90) |
| bradso program (C88) | retention rates (M51) |
| bradso program (C88) | talent alignment (M54) |