Finding Nash and Earning Cash: Applications of Iterated Dominance to Reporting GPAs on Resumes

Abstract

This paper attempts to determine the extent to which job applicants round their grade point averages ("GPAs") on their resumes in a way that is a best response to the strategy of a rational employer. It begins by proving that given certain assumptions, the Nash equilibrium strategy is for applicants to almost always round their GPAs to two decimal places instead of one. It then discusses several theoretical models. Finally, the paper uses a sample of actual reported GPAs from the careers website indeed.com to test several hypotheses that arise from the models. It concludes that there is no evidence of strategic rounding on the part of applicants in the manner predicted; however, the high frequency of round number GPAs suggests possible strategic reporting on the part of job applicants.