Question

Under "early decision" college admission plans, students apply to a college in the fall and, if they are accepted, they must enroll in that college. Some critics of early decision plans, including some college presidents, argue that the plans put too much pressure on students to decide early in their senior year in high school which college to attend. Some college administrators have proposed abolishing early decision plans, but as a columnist in the New York Times noted, "It's more prevalent than ever, with some selective schools using it to fill upward of 40 percent of their incoming freshman class." If many college administrators believe that early decision plans should be abolished, why do their schools continue to use them? Can game theory help analyze this situation?

Short answer

Despite some college administrators believing that early decision plans should be abolished, their schools continue to use them because of the competitive advantage it provides in securing students early (increasing yield) and outpacing competing institutions. Game theory helps us understand this situation: colleges operate in a competitive environment, and their actions are driven not only by their own beliefs, but also by the anticipated decisions of other institutions. Dropping early decision might put a school at a competitive disadvantage if other schools maintain their plans.

Step-by-step solution

Understanding Early Decision Plans

Early Decision (ED) plans are binding commitments to a college. If a student is accepted, they must withdrawal all other applications and attend the college that accepted them. The benefit for the college is that they can secure a certain portion of their incoming class early, and have a higher yield (percentage of accepted students who enroll).

Understanding Game Theory

Game Theory is a theoretical framework for conceiving social situations among competing players. It involves understanding the strategic interaction between different players, where the strategy of one affects the outcome of the other. Actions are based on the anticipation of the actions of other players.

Applying Game Theory to Early Decision Plans

From a game theory perspective, if a school drops early decision but its competitors do not, the school may lose prospective students to competitors that continue to implement ED. Since most students apply to multiple colleges, colleges that do not offer ED could end up with less yield as students have more options and may opt for colleges that accepted them through ED. Thus, even if a college feels ED is negative, they might be compelled to continue it as long as their competitors also do.

Key concepts

Game Theory in Education

Game theory provides a powerful lens to understand different competitive scenarios, including the dynamics of college admissions. Think of colleges as players in a game, each looking to maximize their enrollment rates while competing against other institutions. In this educational game, strategies involve implementing policies like Early Decision (ED). When one school adopts an ED plan, it influences the strategies of other competing schools.

Applying game theory allows us to evaluate strategic decision-making. Colleges assess their policies by anticipating the actions and reactions of their competitors. This interconnected decision-making process shows how a single change in strategy by one institution—such as eliminating or maintaining ED impacts others, often leading to a domino effect where similar strategies are adopted across the board.

• Colleges use game theory to anticipate competitor behavior.
• The interconnected choices lead to widespread ED use, even if it's not the preferred option.

College Admissions Process

The college admissions process, when viewed through the lens of early decision plans, can be complex and strategic. Every step has implications for both students and institutions. Early Decision provides a mutually beneficial arrangement but also introduces unique challenges.

For students, applying under an ED plan shows a strong commitment to a single college, which can increase their chances of acceptance. Yet, this means making a binding choice early in their senior year, potentially creating stress and narrowing options. Colleges use ED to manage enrollment numbers effectively, ensuring a known quantity of committed students before regular decision results are out.

• Students face early pressure to commit to a single school.
• Colleges benefit from stable, predictable enrollment numbers.

However, the need for colleges to compete by offering ED can perpetuate the cycle, impacting how freely students can explore their options.

Strategic Decision Making in Education

Strategic decision-making in education involves navigating complex choices, like whether to implement or continue Early Decision plans. Schools make these decisions not in isolation but with an eye toward the choices of their peer institutions.

Adopting an ED plan can be seen as a strategic move, ensuring yield rates and potentially securing top talent. However, it is also a response to market pressures—if one school offers such a plan and benefits from it, others might feel compelled to follow suit, even if they philosophically disagree with early commitments.

• Decisions are heavily influenced by competitive pressures.
• Institutions must balance ethical considerations with strategic imperatives.

The role of strategic decisions in education highlights how schools aim to navigate the admissions landscape while striving to meet institutional goals.