Why Business Schools Do So Much Research: A Signaling Explanation

Damien Besancenot, Joao Ricardo Faria () and Radu Vranceanu
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Joao Ricardo Faria: Nottingham Business School, Postal: Burton St., Nottingham NG1 4BU, UK, http://www.ntu.ac.uk/nbs

No DR 08002, ESSEC Working Papers from ESSEC Research Center, ESSEC Business School

Abstract: Criticism is mounting on business schools for their excessive focus on research and for neglecting teaching. We show that if students have imperfect information about a school’s overall capabilities and if business schools differ in their research productivity, the least productive schools may do as much research as the top-tier ones only to manipulate student’s expectations. In turn, the most productive schools might resort to excess research in order to signal their type in the eyes of future students. This signalling equilibrium is characterized by a relative neglect of teaching by the top-tier schools. Such a situation is socially inefficient as compared to the perfect information case.

Keywords: Business Schools; Research management; Research policy; Research vs. teaching; Signalling; Imperfect information (search for similar items in EconPapers)
JEL-codes: D82 I23 (search for similar items in EconPapers)
Pages: 19 pages
Date: 2008-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Why business schools do so much research: A signaling explanation (2009)
Working Paper: WHY BUSINESS SCHOOLS DO SO MUCH RESEARCH: A SIGNALING EXPLANATION (2008)
Working Paper: WHY BUSINESS SCHOOLS DO SO MUCH RESEARCH: A SIGNALING EXPLANATION (2008)
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