The pricing of higher education is always a bit mysterious. In the past, colleges and universities have gotten into considerable trouble for price-fixing when it emerged that they had colluded to set their tuition rates or financial aid packages. But sometimes colleges and universities can read the situation without colluding. I doubt that the University of Pennsylvania, Brandeis, Carnegie Mellon, MIT, and the […]
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College was a transformative period in my life. I held my professors in high regard, viewing them as beacons of wisdom. For most of my time there, I was a teaching assistant and laboratory technician in the chemistry department, a role that made me feel like an integral part of the university community. The camaraderie […]
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Public institutions typically charge out-of-state students much higher tuition than in-state students. Bryan Caplan and Alex Tabarrok, two leading libertarian economists, have been discussing the puzzle of why that is the case. They correctly rule out the monopoly or cartel explanation. If public colleges were a monopoly or cartel, they could charge higher prices to […]
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Despite all of the rhetoric from our elected officials about their interest in containing college costs, every American should know that the legislation Congress passed last year reauthorizing the Higher Education Act significantly increases the cost of running a college, and therefore the cost of attending one. By way of example, let’s look at the […]
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