Jacqmin, Julien (2014): The Emergence of For-Profit Higher Education Institutions.
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Abstract
This paper examines the market conditions that facilitate the entry of for-profit institutions into the higher education market. I show how, despite significant government financial support for public institutions, for-profit institutions may still find it profitable to enter the market. They do so by spending large amounts of money on advertising campaigns in order to attract students who are relatively more influenced by the persuasive effect of advertising. I show that entry is more likely the more government subsidies are targeted directly toward students, as opposed to institutions. Even if it decreases social welfare, the introduction of market conditions that are friendly to for-profit universities will allow a government to fulfill its objective of increasing participation in the higher education system.
Item Type: | MPRA Paper |
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Original Title: | The Emergence of For-Profit Higher Education Institutions |
Language: | English |
Keywords: | For-profit higher education institutions, competition, entry, advertising, mixed duopoly |
Subjects: | I - Health, Education, and Welfare > I2 - Education and Research Institutions > I20 - General I - Health, Education, and Welfare > I2 - Education and Research Institutions > I23 - Higher Education ; Research Institutions I - Health, Education, and Welfare > I2 - Education and Research Institutions > I28 - Government Policy L - Industrial Organization > L3 - Nonprofit Organizations and Public Enterprise L - Industrial Organization > L3 - Nonprofit Organizations and Public Enterprise > L30 - General |
Item ID: | 59299 |
Depositing User: | Mr. julien jacqmin |
Date Deposited: | 21 Oct 2014 07:28 |
Last Modified: | 29 Sep 2019 04:18 |
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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/59299 |