MBA Degree Programs Every year various business magazines rank ...

[jenna1]

MBA Degree Programs Every year various business magazines rank the quality of the different MBA programs. Why don't all prospective students flock to the highest ranked program?

Question 2

This factor contributes to the winner's curse
 a. your estimate of the value of the object was not the most optimistic
  b. your bid was not the highest
 c. there were many other bidders that you beat out
 d. you shaded your bid too much

[frre432]

Answer to Question 1

This is an application of the indifference principle. All else equal, students would choose the higher ranked programs. But all else is not equal. Some differences include the cost of attending, differences in location (cost of living, etc.), cost in application preparation which will make students indifferent between a higher ranked and lower ranked program.

Answer to Question 2

c