Gary-Bobo, Robert J.; Trannoy, Alain - In: Journal of the European Economic Association 6 (2008) 6, pp. 1211-1243
We assume that students observe only a private, noisy signal of their ability and that universities can condition admission decisions on the results of noisy tests. If the university observes a private signal of each student's ability, which is soft information, then asymmetries of information...