This study describes the American system of higher education's distributive mechanism in the practice of selective admission and considers possible changes in that system. Chapter One presents the work's overall approach, a three level analysis of the current system from the viewpoints of the individual student and the individual college as well as a conspectus of the system as a whole. Chapter Two describes some main features of the outcome of the existing admissions system in terms of the distribution of students across institutions. Chapters Three and Four analyze the consequences of higher education by enumerating and evaluating the various outputs of higher education in terms of what is "fair" and what is "efficient." Here, alternative descriptions of how the educational system actually operates are provided. Chapter Five follows up the earlier work on defining and measuring equity and efficiency by turning to trade-offs between the two. Chapter Six returns to the central issue: the person or institution's pursuit of individual goals may result in a collective situation in which achievement of those goals is frustrated. Chapter Seven looks at what all of this means for policy decision making and concludes that, although radical change in existing practices are neither feasible nor desirable, improvements in both equity and efficiency are possible if relatively small changes (such as institutional cooperation to limit competition-driven expenditures) are implemented. (56 references) (JB)