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

Matthew Kim

Journal of Public Economics, 2010, vol. 94, issue 5-6, 410-420

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.

Keywords: Early; decision; Financial; aid; Need-blind; admissions (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (16)

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