Graduation Year

2019

Date of Submission

12-2018

Document Type

Open Access Senior Thesis

Degree Name

Bachelor of Arts

Department

Economics

Reader 1

Laura Grant

Terms of Use & License Information

Terms of Use for work posted in Scholarship@Claremont.

Rights Information

© Rory C Fontenot

Abstract

College course enrollment operates as a market under supply cap. Because of the limited number of seats available for any given course some students who have a higher demand for a course are unable to enroll. The current registration system at the Claremont Colleges functions as a random draw system with added time costs. The lack of price signalling in the markets leads to a loss in overall welfare of the student body. By running data through simulated demand curves I am able to determine, on average, how much welfare is being lost by a random draw system. The percent of maximum welfare achieved compared to maximum possible ranges from forty-nine to eighty percent and largely depends on the proportion of enrolled students to the sum of enrolled + enroll requests as well as the demand function type. With price signalling, the student body would be able to reach the maximum achievable welfare.

Share

COinS