Sunday, September 21, 2014

The College Market Isn't Competitive

http://www.nytimes.com/2014/09/21/upshot/why-federal-college-ratings-wont-rein-in-tuition.html?ref=us&abt=0002&abg=1

The Obama administration is working on a program that would provide more information on the prices, graduation rates and other information for potential college students.  The program aims to help lower the tuition cost by allowing students to choose the college that best fits their needs in terms of pricing and academic stress.  However many are doubtful that the program will have any effect.  This is because most college students attend public universities who do not act in a competitive market.  There is price discrimination because many of the institutions charge out of state students a higher price than in state students, limiting the competitiveness of the market.

Do you think that providing more information to the consumer's will aid in a student's choice of education, or are the flaws in the market too large to be overcome merely by information?

34 comments:

  1. Even more than the issue of price discrimination, there's the problem raised in the article of public funding versus tuition. As the author notes, revenue per student is roughly constant since 1988, the only difference is that students pay a larger share, hence rising tuition. I agree with the author that when it comes to the cost of public universities, political issues are key. For example, I think the cheaper in-state funding is just as much a mechanism for garnering in-state support for subsidies as it is a form of price discrimination.

    ReplyDelete
  2. I have to agree that politics has a significant manipulation on public fund for universities and a college rating system under Obama administration will work only if it is not manipulated by politics. The aim of the college rating system is "to improve the quality of higher education while also bringing down costs" but I agree with the author that is it not going to work. With the money that the schools have to spend to market their reputation, the tuition would never be held down. More information leads to too much information and that create the flaw in the education market.

    ReplyDelete
  3. No, I don't think that by providing more information to consumer's will aid in a student's choice of education. As stated in the article, "The bottom line is that better-informed consumers can’t do much to hold down prices in public colleges, because those prices are not set in a competitive market. Instead, they are determined through a political process, so it is only through the ballot box that people can affect them. Perhaps one of the quiet goals of the proposed rating system is to rally voter support for increased funding for public colleges." This notion holds true for public schools, but may be different for private ones. For private schools, the rating system may be more useful, potentially nudging students to community colleges. At the end of the day, though, this program does't lower tuition.

    ReplyDelete
  4. I believe the intention behind empowering consumers with more information is ultimately good. However, like Cam, I am not convinced that more information for prospective students will create enough pressure on colleges to decrease tuition costs at public schools. If tuition were to decrease anywhere it would be by private schools that are more exposed to a competitive market. For some private schools, lower tuitions and not enough endowments could result in the closing of the college.

    Another concern is that by giving benefits only to schools that produce good results, some colleges will become more selective by turning away “at-risk” students. According to the Chronicle, some critics are considering this the “shame list.”

    Lastly, my biggest concern is the rating agency. In providing prospective students with information, the rating agency must gather large sets of data. A lot of the data that the Obama administration has proposed to use such as graduate’s earnings is either missing or incomplete. As a result, the rating system will be flawed and may give some people biased opinions of certain schools. Also, I do not believe that quantitative data alone can fully capture the essence of a college.

    http://chronicle.com/article/Obama-Proposes-Tying-Federal/141229/

    ReplyDelete
  5. I personally am really not that convinced that by giving students more information about prices or graduation rates will really have that much effect on where student decide to go. Personally, I think that many students in high school do not think about cost, at first when looking at colleges. Students look and when they find a college that they like, they then figure out if they will be able to afford to go there. However, I may have a biased opinion on the matter as I am an athlete and the decision to attend certain colleges was very dependent on that.

    ReplyDelete
  6. While further informing consumers may be helpful, I agree that this policy is flawed and most likely will not have an effect on tuition prices. The fact that public universities are not set within a competitive market already points to some of the potential flaws in this plan. The in state vs out of state tuition price discrimination that public universities practice, even further shows the lack of competition within the market, and prohibits many out of state students from even applying.

    ReplyDelete
  7. There is an old English saying "Food cooked with passion and served with love tastes divine." Trust me, it is true even today! Every food enthusiast (like you and me) is well aware that the soul of any good recipe resides in the right blend of spices and fresh natural ingredients. But we might sometimes miss upon an even more important ingredient while cooking food, and which more often than not tampers with the soul of our recipe. Yes, I am talking about food safety & hygiene. One has to be very careful while handling food and maintain the highest level of hygiene and food safety in our kitchen and home. Illustrator CC 2020

    ReplyDelete
  8. I certainly enjoyed the method that you explore your experience and perception of the area of interest mastercam 2017 for solidworks

    ReplyDelete
  9. I wanted to tell you how much I actually appreciate every little thing you’ve discussed to help increase the value of the lives of an individual in this theme. Through your own articles, we have gone through just a beginner to a specialist in the area. It is truly a homage to your endeavours. Thanks Professional software store

    ReplyDelete
  10. What a lovely blog page. I will certainly be back again. Please keep writing! 먹튀검증

    ReplyDelete
  11. Valuable info. Lucky me I found your web site by chance, and I’m shocked why this accident didn’t happened earlier! I bookmarked it. 먹튀사이트

    ReplyDelete
  12. It’s not that I want to copy your website, but I really like the design and style. Could you let me know which theme are you using? Or was it tailor made? 먹튀플러스

    ReplyDelete
  13. There are many other plans that resemble the same protocols you mentioned below. I will keep reading on the ideas. 토토사이트

    ReplyDelete
  14. I have been browsing on-line more than three hours these days, yet I by no means found any interesting article like yours. It¡¦s beautiful worth sufficient for me. In my opinion, if all website owners and bloggers made excellent content as you probably did, the net will likely be much more helpful than ever before. Mega888 apk download

    ReplyDelete
  15. Great stuff from you, man. Ive scan your stuff before and youre just too fantastic. I love what youve got here, love what youre saying and the way you say it. You make it entertaining and you still manage to keep it smart. I cant wait to scan more from you. This is really a great site. 먹튀검증

    ReplyDelete
  16. There are many other plans that resemble the same protocols you mentioned below. I will keep reading on the ideas. 918kiss pussy888 ios

    ReplyDelete
  17. You need to be a part of a tournament for just one of the greatest blogs over the internet. Let me suggest this website! 918kiss kiss918 apk download

    ReplyDelete
  18. You need to be a part of a tournament for just one of the greatest blogs over the internet. Let me suggest this website! 토토사이트

    ReplyDelete
  19. Great stuff from you, man. Ive scan your stuff before and youre just too fantastic. I love what youve got here, love what youre saying and the way you say it. You make it entertaining and you still manage to keep it smart. I cant wait to scan more from you. This is really a great site. 파워볼사이트

    ReplyDelete
  20. Hey dude, what kind of wordpress theme are you using? i want it to use on my blog too ,  918kiss

    ReplyDelete
  21. We still cannot quite think We can often be those checking important points positioned on your webblog. Our kids and that i are sincerely thankful on your generosity and then for giving me possibility pursue our chosen profession path. Just material Managed to get on the web-site. 먹튀검증업체

    ReplyDelete
  22. 당신이 쓴 작품의 환상적 명확성을 위해 감사의 말을하는 것만으로는 충분하지 않습니다. 나는 즉시 귀하의 rss 채널을 포착하여 업데이트에 대한 교육을 계속받을 것입니다. 먹튀검증

    ReplyDelete
  23. This post is greatly simple to scrutinize and recognize without overlooking any unobtrusive components. Remarkable work! 먹튀검증커뮤니티

    ReplyDelete
  24. I needed to create you the little bit of observation in order to thank you as before for these magnificent principles you have discussed above. This has been certainly pretty open-handed with people like you to allow freely precisely what many of us would’ve offered for sale as an ebook in order to make some profit on their own, certainly seeing that you might well have tried it if you wanted. Those principles likewise acted to be a great way to fully grasp most people have a similar fervor like my very own to know somewhat more in terms of this problem. I am sure there are a lot more enjoyable times up front for individuals who read carefully your blog. sub sandwiches

    ReplyDelete
  25. Your substance is completely splendid from various perspectives. I think this is drawing in and educational material. Much obliged to you such a great amount for thinking about your substance and your perusers. 메이저사이트

    ReplyDelete
  26. An impressive share, I given this onto a colleague who had previously been conducting a little analysis with this. And that he in truth bought me breakfast due to the fact I ran across it for him.. smile. So ok, i’ll reword that: Thnx with the treat! But yeah Thnkx for spending enough time go over this, I’m strongly about this and love reading read more about this topic. If at all possible, as you become expertise, do you mind updating your blog with a lot more details? It can be highly helpful for me. Big thumb up for this writing! Motorschaden ankauf Kassel

    ReplyDelete
  27. Wonderful blog! I found it while surfing around on Yahoo News. Do you have any suggestions on how to get listed in Yahoo News? I’ve been trying for a while but I never seem to get there! Appreciate it. 토토검증

    ReplyDelete
  28. Great post but I was wondering if you could write a little more on this subject? I’d be very thankful if you could elaborate a little bit further. Thanks in advance! 먹튀검증

    ReplyDelete
  29. I just couldn't leave your website before telling you that I truly enjoyed the top quality info you present to your visitors? Will be back again frequently to check up on new posts. 먹튀폴리스

    ReplyDelete
  30. Stunning! Such an astonishing and accommodating post this is. I super love it. It's so great thus amazing. I am simply stunned. I trust that you keep on doing your work like this later on moreover.  메이저사이트

    ReplyDelete
  31. I'm going to read this. I'll be sure to come back. thanks for sharing. and also This article gives the light in which we can observe the reality. this is very nice one and gives indepth information. thanks for this nice article.. 먹튀폴리스

    ReplyDelete