> the school's way of competing for the piles of grant money replacement known as undergrads.
I say it's a consequence of their windfall profits from 3-5% yearly tuition increases. Most institutions have "use-it-or-lose-it" budgets. Their accountants can only be so clever in finding ways to spend it, lest it pile up and get released on a state budget report. Then everyone would scream "Why does UXY have a $50mil surplus when they just increased tuition!".
If they wanted to actually compete, they would lower prices. Thats what attracts buyers.
> That is a dangerously oversimplified view of how markets work.
Because university is so expensive, we're told that more things matter than just price.
Buyers are obviously attracted to more than low prices, but some buyers are highly price-sensitive. So, we should let them find something that works for them.
I say it's a consequence of their windfall profits from 3-5% yearly tuition increases. Most institutions have "use-it-or-lose-it" budgets. Their accountants can only be so clever in finding ways to spend it, lest it pile up and get released on a state budget report. Then everyone would scream "Why does UXY have a $50mil surplus when they just increased tuition!".
If they wanted to actually compete, they would lower prices. Thats what attracts buyers.