Asymmetric Players in a Meritocracy: A Case for Affirmative Action

B-Tier
Journal: American Economic Journal: Microeconomics
Year: 2025
Volume: 17
Issue: 3
Pages: 454-75

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We model decisions to apply for college admission, attend job auditions, or run for C-suite positions as costly entry into meritocracies, where the entrant with the highest ability wins a reward. Ability is privately known and players generically differ in commonly known characteristics such as ability distributions, entry costs, or payoffs from winning. Any infinitesimal difference leads to wildly different equilibrium entry probabilities, explaining large dispersion in representation of comparable but nonidentical population groups. Affirmative action policies such as handicapping advantaged players or surcharging them to subsidize disadvantaged players increase participation rates of disadvantaged players and, in return, increase social welfare.

Technical Details

RePEc Handle
repec:aea:aejmic:v:17:y:2025:i:3:p:454-75
Journal Field
General
Author Count
2
Added to Database
2026-01-26