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Cost-Based College Tuition: Evidence From a Case Study

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  • John Spitz

    (Roanoke College)

Abstract

Colleges charge single-price tuition, which constitutes a form of implicit price discrimination, if there are substantial differences in the costs of degree programs. This practice raises questions about the magnitude of allocative effects. This paper, utilizing data from a case study, explores cost differences in degree programs, factors explaining such differences, and possible allocative impact. The findings are that substantial differences exist among some programs in their direct costs; however, the large role of nonallocated costs in tuition charges lessens the potential for cost-based pricing.

Suggested Citation

  • John Spitz, 1979. "Cost-Based College Tuition: Evidence From a Case Study," Public Finance Review, , vol. 7(2), pages 220-230, April.
    • Handle: RePEc:sae:pubfin:v:7:y:1979:i:2:p:220-230
    DOI: 10.1177/109114217900700206
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    References listed on IDEAS

    as
    1. Tollison, Robert D & Willett, Thomas D, 1972. "A Proposal for Marginal Cost Financing of Higher Education," Public Finance = Finances publiques, , vol. 27(3), pages 375-380.
    2. Stephen A. Hoenack & William C. Weiler, 1975. "Cost-Related Tuition Policies and University Enrollments," Journal of Human Resources, University of Wisconsin Press, vol. 10(3), pages 332-360.
    3. Joseph J. Spengler, 1972. "Economic Malfunctioning in the Educational Industry," American Journal of Economics and Sociology, Wiley Blackwell, vol. 31(3), pages 225-239, July.
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