Answer to Question #239168 in Economics for vibha

Question

1)    Online MBA programs significantly reduce the cost to existing managers of obtaining an MBA, as they permit students to maintain their existing residence and employment while working toward an advanced degree in business. Based on your knowledge of the economics of information and student characteristics, compare and contrast the likely characteristics of students enrolled in traditional MBA programs with those enrolled in online MBA programs, and discuss how potential employers might use information about where a candidate obtained his or her MBA degree to screen potential MBA job applicants.

Answer 1

It's possible that students with a spouse and family may be more attracted to online MBA programs. In contrast, traditional MBA programs are more likely to attract singles. There is an adverse selection issue. The individual who selects the traditional MBA program is likely to have a stronger signaling.