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Competition between universities and government regulation
[Конкуренция Между Вузами И Государственное Регулирование]

Author

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  • Verbitskiy, Andrey (Вербицкий, Андрей)

    (Russian Presidential Academy of National Economy and Public Administration (RANEPA))

  • Fridman, Alla (Фридман, Алла)

    (National Research University Higher School of Economics)

Abstract

The article investigates the specifics of the tools used in the Russian state regulation of the market of educational services. A theoretical model of price competition of universities in the vertical service differentiation, where each institution produces services within goszadaniya funded in accordance with the regulations, and to fix prices for services in excess of budgetary quota. The authors show that the optimal allocation of budgetary places should lead to an alignment of prices of commercial spaces at the same cost, but even in this case the resulting distribution will not be effective. Analyzed the effects of price regulation that sets the lower limit of the price at the level of the norm of budget financing, and it is shown that such a regulation to improve the position of universities, where prices were higher this ratio, or slightly deviate from it, but the losers are universities, the price of commercial space in which It was significantly lower than the norm. It is demonstrated that such price regulation is not always entails the growth of social welfare.

Suggested Citation

  • Verbitskiy, Andrey (Вербицкий, Андрей) & Fridman, Alla (Фридман, Алла), 2014. "Competition between universities and government regulation [Конкуренция Между Вузами И Государственное Регулирование]," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 6, pages 137-160, December.
    • Handle: RePEc:rnp:ecopol:e14610
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    References listed on IDEAS

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