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

  • Kim, Matthew
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    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.

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    Article provided by Elsevier in its journal Journal of Public Economics.

    Volume (Year): 94 (2010)
    Issue (Month): 5-6 (June)
    Pages: 410-420

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    Handle: RePEc:eee:pubeco:v:94:y:2010:i:5-6:p:410-420
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