Here's a paper that gives a very clear description of the centralized application process for Finnish polytechnics (applied universities), which gives applicants a complicated strategic problem, and results in many applicants re-applying in subsequent years.
Assignments are by a (school proposing) deferred acceptance algorithm, but applicants get extra points in a school's preferences by listing it first, they can only list four programs, and they must choose which exams to take.
Why Finnish polytechnics reject top applicants
Kristian Koerselman
Education Economics, July 2020
"The Finnish polytechnic assignment provides us with an example where
applicants are asked to strategize in their applications while having poor prior information on the set of programs that would admit them. These features should in and of themselves already be expected to cause a poor assignment outcome.
I highlight the additional role which entrance exams appear to play in creating what should arguably be seen as a misrepresentation of true admission criteria analogous to a misrepresentation of applicants' true preferences. Because applicants take and retake different entrance exams in different years, programs rank the same applicants differently in different years, giving applicants an incentive to reapply even if they were originally assigned to their within-year most preferred feasible program.
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"Finland provides 9 years of compulsory, comprehensive education, after which almost all students continue in approximately equal proportions to either an academically-oriented high school or to a vocational school. High school concludes with a set of nationally standardized and externally graded matriculation exams. Though students have a reasonable amount of freedom in choosing the subjects they want to take an exam in, they have to take into account that different higher education programs value matriculation exam grades in different subjects differently.
Higher education is provided by polytechnics, also called universities of applied sciences, and by universities. The former mainly offer bachelor programs, and the latter mainly combined bachelor/master programs. About half of each birth cohort ever enrolls in higher education, with total yearly admissions somewhat larger at polytechnics than at universities. Although it is not uncommon for vocational school graduates to apply to a polytechnic, high school graduates are the largest group of polytechnic applicants.
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Higher education applications are extremely competitive, with for example only about one-third of polytechnic applicants being admitted nationally each year. Rejected applicants are likely to reapply, often multiple years, and even admitted applicants often reapply. Re-applications are an important reason why the numbers of applicants per seat are so large. Applicants effectively queue into higher education, likely causing them to be admitted at an unnecessarily old age, and therefore also to graduate at an unnecessarily old age.
The 2011 polytechnic applicants on which this study is based for example had on average graduated from high school already two and a half years earlier, and many of them would be older still when they were finally admitted to the higher education program they would eventually graduate from.
"All higher education applications are made to a national clearinghouse. Polytechnic admission decisions are generally made centrally by the clearinghouse itself, while university admission decisions are generally not. In this paper, I analyze the 2011 centralized assignment of high school graduates to Finnish polytechnics. In total, 50,894 high school graduates applied to 16,655 seats in 440 programs, divided over 8 fields.
"The application process starts in March, when
applicants can apply to up to four programs in order of preference. Applicants must then choose which entrance exams to prepare for and take, typically in May or June. After the entrance exams have been graded, an admission score is calculated for each application. This score is mainly based on applicants' matriculation exam grade point averages and entrance exam results. The weights assigned to different matriculation exam subjects are typically shared within each field, and entrance exams tend to be shared as well.
Extra points are awarded for the first listed choice, as well as for factors like relevant labor market experience. The relative weight of the different admission score components in determining the admission score can be seen in Table 2.
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Based on their submitted preference ordering and on their admission scores, applicants are assigned to programs through a centrally run program-proposing deferred acceptance algorithm, each applicant either being admitted to a single program or not being assigned at all. Admitted applicants then either accept their seat or reject it. A much smaller second round of offers is sent out by the programs themselves to make up for first-round rejections. The second round of the process ends at the start of the fall term in September.
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Applicants have multiple reasons to strategize in choosing which programs to apply to. Among others, the fact that applicants receive extra points for their first listed choice implies that they will want to list a program first where they have a chance to actually be admitted. Similarly, the four-program limitation means not only that there may be programs acceptable to the applicant which the applicant is not allowed to list, but also that the applicant will need to use the four allowed applications wisely. Third, the applicant faces a strategic choice in which entrance exams to prepare for and take, typically concentrating all effort on a single application. Fourth, the use of a program-proposing algorithm may in and of itself already give applicants an incentive to strategize."
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"Though applicants receive good indications of their matriculation exam grades before they apply, and may be aware of previous years' admission score cut-offs, they however necessarily learn their entrance exam scores only after choosing where to apply and which entrance exams to take, adding a considerable degree of uncertainty to their application.
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"When classifying applicants into thirds based on their program-specific matriculation exam GPA, as many as 54% of top third applicants remain unassigned anywhere. Even using the actual admission score, 34% of top third applicants remain unassigned.
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Even if applicants do apply to more than one program, their admission chances are relatively low for programs listed second, third and fourth, with the probability of being assigned to a program being 27% for the program listed first, but only between 3 and 4 per cent for programs listed lower. This is partly due to the extra points given for the first listed program, but is probably also related to applicants' strategic choices on which entrance exams to take. "