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1) target universities have to accept the students

Yes! Which the US incentivizes by a) underfunding K-12 education, reducing the internal applicant pool, b) competing grants in a way that incentivizes PIs to grasp for cheap labor. Additionally, the individual states also incentivize this. Look at the UC's own statistics: since 2009 the highest chance of acceptance goes to foreign, ethnically Asian applicants. https://news.ycombinator.com/item?id=20321493

2) RTS-game-esque control of the grad students

Yes! Having been in the room when one of those grad students got a very stressful call from home (like broke down crying multiple times), it's definitely not all carrots. And the removal of carrots eventually looks like a stick.

3) Seems like the rational decision for ambitious grad students

Yes! No amplification needed.



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