The gatekeeper's effect

Many selection processes contain a “gatekeeper”. The gatekeeper’s goal is to examine an applicant’s suitability to a proposed position before both parties endure substantial costs. Intuitively, the introduction of a gatekeeper should reduce selection costs as he sifts out unlikely applicants. However, we show that this is not always the case as the gatekeeper’s introduction inadvertently reduces the applicant’s expected costs and thus interferes with her self-selection. We study the conditions under which the gatekeeper’s presence improves the system’s efficiency and those conditions under which the gatekeeper’s presence induces inefficiency. Additionally, we show that the gatekeeper can sometimes improve selection correctness by behaving strategically (i.e., ignore her private information with some probability).