ERIC Number: ED474474
Record Type: Non-Journal
Publication Date: 2000-Jun
Reference Count: N/A
Where Is Aggressive Price Competition Taking Higher Education? Discussion Paper.
Winston, Gordon C; Zimmerman, David J.
This study attempted to understand how price competition would work in higher education and to explore the likely long run equilibrium structure of prices in that context. Inferences are drawn using both microeconomic theory and historical parallels found in the market for graduate education. The analysis suggests that negative prices are likely to prevail at the wealthiest colleges and universities. Using data from the Integrated Postsecondary Education Data System (IPEDS), the study estimated the resulting distribution of prices and school quality. While price competition may increase attendance by low income students at the wealthiest colleges and universities, it is unclear how these students will fare at schools with middling wealth and resources. Schools with less accumulated wealth will be particularly vulnerable to any ensuing price competition. While these conclusions must be interpreted with caution, they do suggest some cause for alarm. (Contains 3 tables and 11 references.) (SLD)
Publication Type: Reports - Research
Education Level: N/A
Sponsor: Andrew W. Mellon Foundation, New York, NY.
Authoring Institution: Williams Coll., Williamstown, MA.