The Economics of Public Issues-College Costs Outline

The Economics of Public Issues-College Costs Outline -...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
College Costs Over the past three decades the cost of college education has tripled, not because the education has bettered but because the value of education has risen. There are so many colleges and universities in the US that it is a monopolistic competition where the education offered is similar but set apart by advertising and product differentiation. What makes colleges and universities not a good model for monopolistic competition is that they are non profit, but there are other factors that cause prices of tuition to go up. Competition causes colleges to want to hire the best professors…but first they need to have top of the line technology, etc. Competition also causes colleges to want the best students therefore they
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: implement price differentiation. • Students with high SAT scores get higher scholarships, have to pay less, therefore are more attracted to go to the school. • Regular students suffer as a result because tuition goes up and their scholarships don’t. • Some states have lotteries that provide for educational scholarships that are kept up (or not) by students grades. • As students stay in one school their elasticity of demand decreases because even if they lose scholarship money they’re still likely to stay in the same school. • Students who lose scholarships give up that money to new students while tuition keeps going...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern