Profiling in Bargaining Over College Tuition

Dennis Epple, Richard Romano, Sinan Sarpaca and Holger Sieg
Authors registered in the RePEc Author Service: Sinan Sarpça

Economic Journal, 2006, vol. 116, issue 515, F459-F479

Abstract: Profiling in college admissions arises when applicant attributes are given weight because they are correlated with unobservable student characteristics that the college values. The article models the admission process of a single college as a bargaining game between the college and a potential student with sequential moves and asymmetric information. We test the empirical implications of this model using a unique data set from a private college in the US. We find that the empirical evidence is consistent with the notion that signalling and profiling are important aspects of the college admission process. Copyright 2006 The Author(s). Journal compilation Royal Economic Society 2006.

Date: 2006
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