Why do grad schools want to know where else you apply?

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Elante
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I'm applying to Ph.D and M.S. programs in medical physics this year, and I've noticed on some applications there is an option to fill in what other graduate schools I am applying to. Why do grad schools want this information? Would it increase my chances if I provide that information? Could it hurt my chances if I do not? Any insight would be appreciated!
 
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They want to know who they are competing against. You could just leave it blank or you might improve your chances by listing some high end schools. Personally I think it's un-proffesional for a university

When I was a applying for undergrad he place I went would give you a 50% lower entry requirement if you were also applying to the other college across town. It makes a slight mockery of the idea that you need a certain grade because of the difficulty of the course.
 
There's a spot on the application to list other schools? That seems weird, since none of my applications had anything like this. Once when I was visiting a school, one of the professors informally asked me where else I was applying, but that's the most I ever had to divulge. I don't know what goes on in admissions committee meetings, but I seriously doubt it matters all that much what you put in this section.