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WHY BUSINESS SCHOOLS DO SO MUCH RESEARCH:
A SIGNALING EXPLANATION

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Joao Faria
  • Function : Author
  • PersonId : 846621
Radu Vranceanu
  • Function : Author
  • PersonId : 842986

Abstract

Criticism is mounting on business schools for their excessive focus on research and for neglecting teaching. We show that if students have imperfect information about a school's overall capabilities and if business schools differ in their research productivity, the least productive schools may do as much research as the top-tier ones only to manipulate students' expectations. In turn, the most productive schools might resort to excess research in order to signal their type in the eyes of future students. This signaling equilibrium is characterized by a relative neglect of teaching by the top-tier schools. Such a situation is socially inefficient as compared to the perfect information case.
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Dates and versions

halshs-00241259 , version 1 (06-02-2008)

Identifiers

  • HAL Id : halshs-00241259 , version 1

Cite

Damien Besancenot, Joao Faria, Radu Vranceanu. WHY BUSINESS SCHOOLS DO SO MUCH RESEARCH:
A SIGNALING EXPLANATION. 2008. ⟨halshs-00241259⟩
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