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Application Fees and Assessment Errors

17 Pages Posted: 1 Dec 2013 Last revised: 30 Apr 2014

Oz Shy

Independent

Date Written: April 29, 2014

Abstract

I analyze a formal application process where the quality of applicants is not observable. Some potential applicants err in their self-assessment, and a service provider, who administers a formal application process, misjudges the qualifications of some applicants. Two types of errors are analyzed: Classifying qualified candidates as unqualified (type alpha), and classifying unqualified as qualified (type beta). I examine the role played by admission policies and application fees in reducing applications and acceptances of less qualified applicants.

Keywords: Application fees, qualifications assessment errors, formal application process, admission policy

JEL Classification: L1, L8, G21

Suggested Citation

Shy, Oz, Application Fees and Assessment Errors (April 29, 2014). Available at SSRN: https://ssrn.com/abstract=2361641 or http://dx.doi.org/10.2139/ssrn.2361641

Oz Shy (Contact Author)

Independent ( email )

No Address Available

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