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Competing Campuses: Equilibrium Prices, Admissions, and Undergraduate Programs in US Higher Education

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  • Emily E. Cook

    (Tulane University)

Abstract

I build and estimate an equilibrium model of US undergraduate education in which universities compete by choosing prices, admission standards, and major programs to offer. Estimates suggest that students are willing to pay $50 per year for an additional program, and $118 for a percentage point increase in the share of programs offered in STEM. A counterfactual $1,000 scholarship for Wisconsin students to attend in-state public universities generates a $400 average in-state tuition increase and a 1.75% increase in enrollment. A $100 per-student subsidy to universities for each STEM program increases STEM pro- grams offered by 27% and enrollment by 1.5%.

Suggested Citation

  • Emily E. Cook, 2021. "Competing Campuses: Equilibrium Prices, Admissions, and Undergraduate Programs in US Higher Education," Working Papers 2120, Tulane University, Department of Economics.
    • Handle: RePEc:tul:wpaper:2120
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    File URL: http://repec.tulane.edu/RePEc/pdf/tul2120.pdf
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    Cited by:

    1. Acton, Riley K., 2022. "Is a name change a game change? The impact of college-to-university conversions," Economics of Education Review, Elsevier, vol. 88(C).

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    More about this item

    Keywords

    College choice; College admission; College majors; Financial aid; STEM; 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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