The problem of school enrollment rules: what can be changed in the largest city in Brazil

Abstract School choice is an issue little studied in Brazil, despite its huge importance, especially in the USA. In this paper, using game theory, how students are allocated in municipality of São Paulo is analyzed. As students ‘preferences are not taken into account, the São Paulo system does not meet the main qualities of an allocation mechanism: stability, non-manipulation and efficiency. Alternatively, the use of the Gale-Shapley mechanism is proposed. Simulations are performed confirming theoretical results and also indicating a huge potential for improvement in the system.