Event Title

Do Liberal Arts College Profit Maximize?

Date

1-4-2017 12:00 AM

Major

Economics/Philosophy

Department

Economics

College

College of Liberal Arts and Sciences

Project Advisor

Peter Orazem

Project Advisor's Department

Economics

Description

"Do private liberal arts colleges profit maximize?" We organized an empirically driven study around that question. Using data garnered on 473 liberal arts institutions across the country through the Integrated Post Secondary Education system (IPEDS), we posited an econometric model that would drive us towards an answer. In addition to that model; we also endeavored to derive individual elasticities of demand for each institution in our set as a measure of their position on the price elasticity line. Our results indicate that many of these institutions do engage in profit maximizing behavior, as well as discovering a relationship between an institutions "prestige" (measured in proxy by our study by a measure of selectivity) and its ability to set profit maximizing prices.

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Apr 1st, 12:00 AM

Do Liberal Arts College Profit Maximize?

"Do private liberal arts colleges profit maximize?" We organized an empirically driven study around that question. Using data garnered on 473 liberal arts institutions across the country through the Integrated Post Secondary Education system (IPEDS), we posited an econometric model that would drive us towards an answer. In addition to that model; we also endeavored to derive individual elasticities of demand for each institution in our set as a measure of their position on the price elasticity line. Our results indicate that many of these institutions do engage in profit maximizing behavior, as well as discovering a relationship between an institutions "prestige" (measured in proxy by our study by a measure of selectivity) and its ability to set profit maximizing prices.