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It is mostly determined by the individual player's skill. Further, at the highest levels of junior hockey, the player losses control over the number of choices they have due to fewer leagues/teams. Currently in the US there are the following USA Hockey sanctioned junior leagues (according to usahockey.com):

Tier 1:

USHL

Tier 2:

NAHL

Tier 3:

AJHL

AWHL

ESHL

Met

MJHL

NA3HL

NPHL

At the top two tiers, players are drafted or tendered to one specific team. It is much more competitive at these levels. So players have little choice to play in these leagues. Either they are good enough for a team to select them or not.

For tier 3, there are obviously a lot more teams and leagues. So players can decide based on the location of the leagues. Also, while all of these leagues are now ranked as "Tier 3" according to USA Hockey, there is still a large difference in skill between them. For example, the Met normally feeds into the AJ. The Empire usually feeds into the EJ. Players at this level can choose which league/team to tryout for based on there skill and where they would like to live.

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