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American Economic Review Vol. 115 No. 9 2025

Test-Optional Admissions

Wouter Dessein1; Alex Frankel2; Navin Kartik3

1 Columbia University, Graduate School of Business (email: ) · 2 University of Chicago, Booth School of Business (email: ) · 3 Columbia University, Department of Economics (email: )

Abstract

Many US colleges now use test-optional admissions. A frequent claim is that by not seeing standardized test scores, a college can admit a student body it prefers, say, with more diversity. But how can observing less information improve decisions? This paper proposes that test-optional policies are a response to social pressure on admission decisions. We model a college that bears disutility when it makes admission decisions that “society” dislikes. Going test optional allows the college to reduce its “disagreement cost.” We analyze how missing scores are imputed and the consequences for the college, students, and society.

DOI
10.1257/aer.20231407
Volume
115
Issue
9
Pages
3130-3170
Language
en
Sources
bibtex:phds-export.bib openalex crossref

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