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The Effect of Coarse Score Labels on College Application Decisions

Author

Listed:
  • Tomoharu Mori

    (College of Comprehensive Psychology, Ritsumeikan University)

  • Katsuya Takii

    (Osaka School of International Public Policy, Osaka University)

Abstract

This study examines whether people are inattentive to once-in-a-lifetime events. Using data from Japanese entrance examinations, we show that, even in situations where there appears to be little difference in the actual admissions probability, students change their school of choice simply because the coarse label describing admissions probability has changed. To understand the mechanism behind this result, we model students’ application decisions by incorporating inattention. The results suggest that, in once-in-a-lifetime situations, students do observe information more carefully than usual, but they still cannot be completely attentive. We also find that people with better information processing skills and who are accustomed to processing more information daily pay greater attention to information.

Suggested Citation

  • Tomoharu Mori & Katsuya Takii, 2025. "The Effect of Coarse Score Labels on College Application Decisions," OSIPP Discussion Paper 25E002, Osaka School of International Public Policy, Osaka University.
    • Handle: RePEc:osp:wpaper:25e002
    as

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    File URL: https://www.osipp.osaka-u.ac.jp/archives/DP/2025/DP2025E002.pdf
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    References listed on IDEAS

    as
    1. Bleemer, Zachary & Zafar, Basit, 2018. "Intended college attendance: Evidence from an experiment on college returns and costs," Journal of Public Economics, Elsevier, vol. 157(C), pages 184-211.
    2. Dmitry Taubinsky & Alex Rees-Jones, 2018. "Attention Variation and Welfare: Theory and Evidence from a Tax Salience Experiment," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 85(4), pages 2462-2496.
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    4. Raj Chetty & Adam Looney & Kory Kroft, 2009. "Salience and Taxation: Theory and Evidence," American Economic Review, American Economic Association, vol. 99(4), pages 1145-1177, September.
    5. Matthew Wiswall & Basit Zafar, 2015. "Determinants of College Major Choice: Identification using an Information Experiment," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 82(2), pages 791-824.
    6. William Morrison & Dmitry Taubinsky, 2023. "Rules of Thumb and Attention Elasticities: Evidence from Under- and Overreaction to Taxes," The Review of Economics and Statistics, MIT Press, vol. 105(5), pages 1110-1127, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Inattention; college application; regression discontinuity; score labels;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions

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