CHAP11_Presentation - Additional Empirical Studies in Price...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Chapter 3 Additional Empirical Studies in Price Analysis A. Primary (and Secondary) educational market B. Two-sided market pricing strategy C. Auction market A: Primary educational market (public schools) Why do we pay property tax? Why do we pay sales tax? What is the purpose of federal education funding, e.g., the No Child Left Behind Act? ($25 billion in 2008) Q: what factors determine student performance? 0 (Standardized Test Score) Q P = property tax Supply1 Demand A supply-demand analysis of primary educational market Tax Incidence? (Per-Pupil School Funding) P Supply2 America has the best higher education system in the world though the poor academic performance of pupils is substandard as measured by mathematics and science international tests Subsidy: 1: State level, sales tax 2. Federal level, NCLB
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 Chapter 3 Market Forces of Demand and Supply for Education • Variables that affect quantity demanded: – Price, income, prices of related goods, tastes – Demand = D(Ppropety tax, family income, price of private education, race, rural, unemployment rate, parental education, etc) • Variables that affect quantity supplied: – Price, input prices, technology – Supply = S(Ps, class size, teacher’s education, teacher’s experience, teacher’s salary, computers, internet, etc) • Equilibrium condition: Ps= Pproperty tax +state funding + federal funding • Impact of housing market crash on school funding? B: Two-Sided Market Competition in two-sided markets Two-sided markets: two groups of agents interact via a platform. Agents B Platform Agents A Who pays low/0/- Price C: Auction Markets Auctions : establish prices by bidding and sometimes by simultaneous offers, using clear rules. A huge volume of goods and services, property, and financial instruments, are sold through auctions, and many new auction markets are being designed, including, for example, for mobile- phone licenses, electricity, pollution permits, and drilling rights for offshore oil The Standard Auction Types 1. English auction (ascending bid auction)- auctioneer begins with
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 6

CHAP11_Presentation - Additional Empirical Studies in Price...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online