We develop a decentralized Bayesian model of college admissions with two ranked colleges, heterogeneous students and … two realistic match frictions: students find it costly to apply to college, and college evaluations of their applications … is uncertain. Students thus face a portfolio choice problem in their application decision, while colleges choose …

students were considered members of assets classes with different risk-return combinations? Using forty years of merged … admissions-philanthropy records on students at a highly selective liberal arts college, we estimate the simple financial model … point out the most (and least) attractive potential students in terms of their projected future donations …

attending a four-year college and lower student debt. The effect is more pronounced for students who receive less financial aid …