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Why business schools do so much research: A signaling explanation

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  • Besancenot, Damien
  • Faria, Joao Ricardo
  • Vranceanu, Radu

Abstract

Criticism is mounting on business schools for their excessive focus on research and the relative neglect of teaching quality. This paper shows that if students have imperfect information about teaching quality and if business schools differ in their research productivity, the least productive schools would do as much research as the top-tier ones only to manipulate students' expectations. In turn, the most productive schools might resort to excess research in order to signal their type in the eyes of prospective students. Since resources are limited, they also tend to neglect teaching quality. Such a situation is socially inefficient as compared to the perfect information case.

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Bibliographic Info

Article provided by Elsevier in its journal Research Policy.

Volume (Year): 38 (2009)
Issue (Month): 7 (September)
Pages: 1093-1101
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Handle: RePEc:eee:respol:v:38:y:2009:i:7:p:1093-1101

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For corrections or technical questions regarding this item, or to correct its listing, contact: (Jeroen Loos).

Related research

Keywords: Business schools Research management Research policy Research vs. teaching Signaling Imperfect information;

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References

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  1. Besancenot, Damien & Vranceanu, Radu, 2006. "Can Incentives for Research Harm Research? A Business Schools Tale," ESSEC Working Papers DR 06003, ESSEC Research Center, ESSEC Business School.
  2. Michael Spence, 2002. "Signaling in Retrospect and the Informational Structure of Markets," American Economic Review, American Economic Association, vol. 92(3), pages 434-459, June.
  3. Besancenot, Damien & Huynh, Kim & Vranceanu, Radu, 2006. "The "Read or Write" Dilemma in Academic Production: A European Perspective," ESSEC Working Papers DR 06021, ESSEC Research Center, ESSEC Business School.
  4. J. S. Armstrong, 2005. "The Devil<92>s Advocate Responds to an MBA Student<92>s Claim that Research Harms Learning," General Economics and Teaching 0502008, EconWPA.
  5. Elizabeth Becker & Cotton M. Lindsay & Gary Grizzle, 2003. "The derived demand for faculty research," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 24(8), pages 549-567.
  6. Spence, A Michael, 1973. "Job Market Signaling," The Quarterly Journal of Economics, MIT Press, vol. 87(3), pages 355-74, August.
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