Improving scholarship assignment using approximate dynamic programming: A Chilean case study
A solution approach is proposed for a problem of assigning scholarships under budget constraints and uncertainty regarding the duration of previously awarded scholarships as determined by future renewals. The problem objective is to maximize the sum of the scores of accepted applicants subject to tw...
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| Vydané v: | Socio-economic planning sciences Ročník 102; s. 102296 |
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| Jazyk: | English |
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01.12.2025
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| ISSN: | 0038-0121 |
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| Abstract | A solution approach is proposed for a problem of assigning scholarships under budget constraints and uncertainty regarding the duration of previously awarded scholarships as determined by future renewals. The problem objective is to maximize the sum of the scores of accepted applicants subject to two conditions: (1) no applicant can be assigned a scholarship until assignments have been made to all applicants with higher scores; and (2) the annual budget allocation must first cover all renewals of previous awards. The approach is built around the formulation and approximate solution of a Markov decision process that provides a systematic method for identifying scholarship assignment policies which make efficient use of the annual scholarship budget. The benefits of the approach are analysed in a case study involving a scholarship offered annually in Chile that compares via simulation the solutions generated by various alternative assignment procedures with those of the proposed model. The results suggest that under the latter, 7% to 9% more students would be awarded scholarships each year without increasing the yearly budget.
•We propose a solution approach for assigning scholarships under a limited budget•It aims to maximize applicant scores while ensuring budget covers grant renewals•A Markov decision process is used to identify an efficient budget allocation policy•This approach grants 7-9% more scholarships without increasing the annual budget |
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| AbstractList | A solution approach is proposed for a problem of assigning scholarships under budget constraints and uncertainty regarding the duration of previously awarded scholarships as determined by future renewals. The problem objective is to maximize the sum of the scores of accepted applicants subject to two conditions: (1) no applicant can be assigned a scholarship until assignments have been made to all applicants with higher scores; and (2) the annual budget allocation must first cover all renewals of previous awards. The approach is built around the formulation and approximate solution of a Markov decision process that provides a systematic method for identifying scholarship assignment policies which make efficient use of the annual scholarship budget. The benefits of the approach are analysed in a case study involving a scholarship offered annually in Chile that compares via simulation the solutions generated by various alternative assignment procedures with those of the proposed model. The results suggest that under the latter, 7% to 9% more students would be awarded scholarships each year without increasing the yearly budget.
•We propose a solution approach for assigning scholarships under a limited budget•It aims to maximize applicant scores while ensuring budget covers grant renewals•A Markov decision process is used to identify an efficient budget allocation policy•This approach grants 7-9% more scholarships without increasing the annual budget |
| ArticleNumber | 102296 |
| Author | Marquinez, José Tomás Sauré, Antoine Rey, Pablo A. Redondo, Sofía Cataldo, Alejandro |
| Author_xml | – sequence: 1 givenname: Sofía surname: Redondo fullname: Redondo, Sofía organization: School of Engineering, Pontificia Universidad Católica de Chile, Av. Vicuña Mackenna 4860, Santiago, Chile – sequence: 2 givenname: Alejandro orcidid: 0000-0001-8123-9862 surname: Cataldo fullname: Cataldo, Alejandro email: aecatald@uc.cl organization: Institute for Mathematical and Computational Engineering, School of Engineering, Pontificia Universidad Católica de Chile, Av. Vicuña Mackenna 4860, Santiago, Chile – sequence: 3 givenname: José Tomás orcidid: 0000-0003-1525-3038 surname: Marquinez fullname: Marquinez, José Tomás organization: School of Engineering, Pontificia Universidad Católica de Chile, Av. Vicuña Mackenna 4860, Santiago, Chile – sequence: 4 givenname: Pablo A. surname: Rey fullname: Rey, Pablo A. organization: Departamento de Industria and Instituto Universitario de Investigación y Desarrollo Tecnológico, Universidad Tecnológica Metropolitana, Av. José Pedro Alessandri 1242, Santiago, Chile – sequence: 5 givenname: Antoine surname: Sauré fullname: Sauré, Antoine organization: Telfer School of Management, University of Ottawa, 55 Laurier Avenue East, Ottawa, ON K1N 6N5, Canada |
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| Keywords | Approximate dynamic programming Linear programming Public services Scholarship assignment Markov decision processes Simulation |
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