ZEW Spinoff MatchingTools to Take Up Operations

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Algorithms for Fair Allocation of Daycare Spaces and Other Placements

The first product from the startup founded by ZEW Mannheim is the software solution KitaMatch, which uses algorithms to determine a balanced distribution of daycare spots.

ZEW Mannheim has spun off the enterprise MatchingTools. The first software solution developed by the start-up is KitaMatch, a product that has already been deployed by several German municipalities, for example, Tübingen and Kaiserslautern. The algorithm-based tool determines a stable allocation of daycare places that meets allocation criteria. Daycare centres may, if they wish, influence the allocation of places, which safeguards the autonomy of daycare centre operators. The allocation software is based on findings from Nobel Prize-winning research into matching, specifically the theory of stable allocations and the practical design of matching markets. The start-up is supported by the Federal Ministry for Economic Affairs and Energy and the European Social Fund through the EXIST research transfer programme.

“MatchingTools GmbH aims to redesign complex and time-consuming allocation processes, reducing the workload of administrations and ensuring that the allocation of places is efficient, transparent and fair. This works for childcare places but also for other matching markets, such as the allocation of school or therapy places, where allocation is difficult,” says Dr. Gian Caspari, managing director of MatchingTools GmbH and researcher in ZEW’s Research Unit “Market Design”.

ZEW President Professor Achim Wambach, PhD emphasises: “MatchingTools is an excellent example of how scientific findings in the field of market design are put into practice. Thanks to the government’s start-up funding, we have the opportunity to turn our research into market-ready solutions.”

Software solutions for efficient and fair allocation procedures

MatchingTools GmbH is a spin-off from ZEW Mannheim. It receives support under the EXIST funding programme run by the Federal Ministry for Economic Affairs and Energy and is co-financed by the European Social Fund. Working jointly with leading European researchers in the field of matching markets, the start-up develops software solutions for efficient, transparent and fair allocation procedures in public markets. These are to be made permanently available to municipalities throughout Germany. The applications are based on scientific findings from market design research and are developed in close collaboration with partners from the field.

KitaMatch for a transparent and fair allocation of daycare places

KitaMatch solves the central problems of the allocation of daycare places. On the one hand, the law provides for the autonomy of daycare centre operators when allocating places; on the other hand, municipalities must consistently adhere to their allocation criteria. KitaMatch brings these two requirements together: Internationally proven, context-specific matching algorithms help to coordinate the allocation of places in a way that is transparent, fair and, at the same time, practical. This relieves the burden on local authorities during the allocation process and, in some cases, enables them to cut down on staff numbers. Instead of weeks or months of uncertainty, the waiting time for parents is reduced to just a few days

The procedure is designed so that daycare centres recognise the benefits for their own capacity planning and voluntarily participate in the coordinated allocation. Municipalities, in turn, gain a robust basis for effectively avoiding legal disputes thanks to the transparent application of criteria and

comprehensive documentation. Parents benefit from significantly faster confirmation. Further information can be found at www.matchingtools.de.