The Test-Optional Puzzle

US colleges often justify test-optional admissions policies as promoting diversity by reducing their reliance on standardized test scores. But a college that mandates test scores can decide how to use those scores. Wouldn't more information allow a college to make decisions it prefers? Indeed, this paper identifies a broad set of assumptions under which test-mandatory policies are always weakly better for colleges. We then discuss how alternative assumptions might rationalize test-optional policies.