TEC (Theory) Seminar: Jeff Ely, Northwestern University

Speaker

Jeff Ely, Northwestern University

Biography

Jeff Ely is a microeconomic theorist with interests ranging from pure game theory to applied microeconomics to behavioral and experimental economics. His work includes contributions to the foundations of game theory under incomplete information, repeated games, and mechanism design, the evolution of preferences, and torture. He is a Fellow of the Econometric Society. He was a founding co-editor of the open access journal Theoretical Economics.

Title

"Screening with Tests"

Abstract

I study the monopolistic design of a college admissions test.  Students have private information about their ability and apply to colleges by submitting verifiable resumes in addition to test results.  Due to screening frictions the profit maximizing testing structure is less informative than colleges would prefer and distorts admissions probabilities for students with poor resumes. Mandatory testing only makes things worse.