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Early decision and financial aid competition among need-blind colleges and universities

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  • Kim, Matthew

Abstract

This paper presents a stylized theoretical model of competition among need-blind colleges and universities that implement early decision admissions. Under need-blind admissions, an applicant's financial aid status cannot affect their likelihood of admission. In the model, a need-blind school can use early decision admissions as a screening mechanism to indirectly identify a student's ability-to-pay, while superficially maintaining a need-blind policy. As a result, in equilibrium, non-financial aid students are more likely to be admitted than financial aid students of comparable quality.

Suggested Citation

  • Kim, Matthew, 2010. "Early decision and financial aid competition among need-blind colleges and universities," Journal of Public Economics, Elsevier, vol. 94(5-6), pages 410-420, June.
  • Handle: RePEc:eee:pubeco:v:94:y:2010:i:5-6:p:410-420
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    References listed on IDEAS

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    Cited by:

    1. Chen, Wei-Cheng & Kao, Yi-Cheng, 2014. "Simultaneous screening and college admissions," Economics Letters, Elsevier, vol. 122(2), pages 296-298.
    2. Soohyung Lee & Muriel Niederle, 2015. "Propose with a rose? Signaling in internet dating markets," Experimental Economics, Springer;Economic Science Association, vol. 18(4), pages 731-755, December.
    3. Christopher Avery & Jonathan Levin, 2010. "Early Admissions at Selective Colleges," American Economic Review, American Economic Association, vol. 100(5), pages 2125-2156, December.
    4. Chapman, Gabrielle & Dickert-Conlin, Stacy, 2012. "Applying early decision: Student and college incentives and outcomes," Economics of Education Review, Elsevier, vol. 31(5), pages 749-763.
    5. repec:eee:pubeco:v:155:y:2017:i:c:p:164-178 is not listed on IDEAS
    6. Dennis Epple & Richard Romano & Sinan Sarpça & Holger Sieg, 2013. "The U.S. Market for Higher Education: A General Equilibrium Analysis of State and Private Colleges and Public Funding Policies," NBER Working Papers 19298, National Bureau of Economic Research, Inc.
    7. Van Kolpin & Mark Stater, 2013. "The Real Deal? Information Asymmetries and Tuition Discounting in Higher Education," Review of Economic Analysis, Rimini Centre for Economic Analysis, vol. 5(2), pages 190-212, December.

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