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The document discusses the inefficiencies that can occur in college admission systems when supply and demand are not properly matched. It notes that college admissions behave similarly to markets, with universities representing supply and applicants demand. However, in admissions, supply and demand are not determined by price but rather by how well applicant interests match college entry standards. This can lead to waste if qualified students do not enroll in colleges they match with or enroll in colleges where they do not meet standards. The document argues that mathematical models used to optimize student-college matching can help save societal costs and create stability by better aligning preferences and qualifications.

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Phương Di
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31 views

Ass 1

The document discusses the inefficiencies that can occur in college admission systems when supply and demand are not properly matched. It notes that college admissions behave similarly to markets, with universities representing supply and applicants demand. However, in admissions, supply and demand are not determined by price but rather by how well applicant interests match college entry standards. This can lead to waste if qualified students do not enroll in colleges they match with or enroll in colleges where they do not meet standards. The document argues that mathematical models used to optimize student-college matching can help save societal costs and create stability by better aligning preferences and qualifications.

Uploaded by

Phương Di
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Class: MBA

College admission is a typical case about dealing with efficiency. The education ‘s
resource is scarce because the quality of education system cannot be improved
effectively in the short term.

The college admission has similar characteristic to the normal market, the allocation
of resource will be called efficiency when the supply matches the demand. For the
college admission the supply stands for the universities and college, and the demand
stands for the applicants. For the market of admission, the university (supply) focuses
on the number of students who qualified. And for the demand (applicants) focus on
which university they value high ranking.

But in the admission market, the supply and demand do not depend on the price factor,
it bases on the match between the interest of the applicant and the college’s
requirement’s entry standard. Because each student writes their name on many
colleges and their preference for each college also differ. So, in the case, there are
many qualified students for certain colleges, but they did not register, others, however
some students may choose the wrong school where they did not meet the qualification.

According to economics’ perspective, this situation causing the waste for the education
system. The ineffective admission process will lead to the influence for the labor
market in the long term. We can call that is the ineffective market which cause the
waste for all society.

The case of marriage is also the same, each gender will have chance to get marriage
with someone. How to arrange for that the stability of marriage to ensure that each of
them will be married to somebody they prefer according to the arrangement and the
divorce will not happen.

The mathematical model used to deal with that problem in the research is really
necessary for the society, it will help to optimize the quantity of students going to
university basing on the match between their preference and their qualification. It is
clear that, this model helps to save the cost for total society and create the stability for
the society. Therefore, for those remarkable contribution for the society, D. Gale and
Sharpley took the Nobel Prize.

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