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Market Structure and College Access in the US

Author

Listed:
  • Emily E. Cook
  • Emily Cook

Abstract

State governments provide grants to students to subsidize college attendance. In response, colleges can adjust their tuition, aid policies, and admission standards, affecting equilibrium enrollment and pass-through of aid to students. To quantify demand- and supply-side responses, I develop a model that incorporates the geographic nature of the market and strategic competition between individual colleges. Simulations demonstrate that college responses are meaningful: when students receive $1,000 to attend in-state public colleges, these colleges absorb over 40% of the subsidy on average and raise admissions standards, reducing the enrollment effect of the policy. Close competitors see enrollment declines of 2-3%.

Suggested Citation

  • Emily E. Cook & Emily Cook, 2025. "Market Structure and College Access in the US," CESifo Working Paper Series 11733, CESifo.
    • Handle: RePEc:ces:ceswps:_11733
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    File URL: https://www.cesifo.org/DocDL/cesifo1_wp11733.pdf
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    More about this item

    Keywords

    college choice; college admission; college enrollment; financial aid; mixed oligopoly; non-profit firms; demand estimation;
    All these keywords.

    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship

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