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Financial aid and early admissions at selective need-blind colleges

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  • Zeky Murra-Anton

    (Brown University)

Abstract

I study a college-admissions model with two need-blind colleges and heterogeneous students. In a game in which colleges can choose a financial aid policy and either binding, nonbinding, or no early admissions, a unique equilibrium outcome exists. In equilibrium, the more prestigious and wealthier college is more selective, has a more generous financial aid policy, and offers nonbinding early admissions, whereas the other college offers a binding program. Compared to the counterfactual in which only regular admissions are offered, early admissions make the more prestigious college worse off, the other college better off, and students, in the aggregate, better off.

Suggested Citation

  • Zeky Murra-Anton, 2022. "Financial aid and early admissions at selective need-blind colleges," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 74(3), pages 833-870, October.
    • Handle: RePEc:spr:joecth:v:74:y:2022:i:3:d:10.1007_s00199-021-01379-0
    DOI: 10.1007/s00199-021-01379-0
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    More about this item

    Keywords

    College early admissions; Need-blind admissions; College financial aid; Decentralized matching;
    All these keywords.

    JEL classification:

    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship

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