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Drawing on interview data collected during the 2008-2009 academic year, I examine the complex role principals of public high schools of choice play in the educational market in New York City. I find that the schools are not static actors in the choice process. In particular, the decision-making of principals in the market is shaped by the mixed political incentives of accountability measures and market-based reforms. These blended reform efforts can lead to “perverse incentives” for schools, which result in ethical dilemmas and, occasionally, sorting practices on the part of the schools.