The Market for Students
I've written and webbed a first draft of an article on the subject. What I like about it is that the observed pattern—more money offered to students with poorer parents—comes out of the model without having to be put in. I don't assume that colleges have ideological or public relation reasons to admit poor students, although it's certainly possible—in part because they also have reasons to admit rich students, on the theory that they are more likely to end up as rich alumni. Yet I conclude that, in equilibrium, poorer students will be offered more money, ceteris paribus.
Labels: colleges scholarships