There’s the weird incentive for schools to appear selective. That’s why UCSD would rather reject great candidates because chances are they’ll go to the likes of Harvard. Why accept candidates that will ultimately go elsewhere? Better to be the dumper than the dumpee and improve your rankings. It’s awful.
> Why accept candidates that will ultimately go elsewhere?
Idea: When you apply for a college, you have to prepay for the first semester. If you get admitted, you have already paid for the first semester. If you get rejected, you get this advance payment back. On the other hand, if you get admitted, but decide to go somewhere else, you loose money.
This should give the university a strong incentive not to reject strong candidates that will go somewhere else - quite the opposite: if you admit such a candidate, but the candidate goes somewhere else, the university earns even more (the semester fee without having to provide any service for this money).
It’s not about dumpee or dumper or rankings games.
Admissions has to target a fixed number of students each year, plus or minus. Students have to decide where to attend in a narrow window. If you accept a lot of students who are unlikely to attend then you would undershoot your admissions target and have to try to convince students to attend in later rounds of admission, but that’s too late because they’ve already decided to go somewhere else.