Aim High or Go Low? Pricing Strategies and Enrollment Effects when the Net Price Elasticity Varies with Need and Ability
Curs, Bradley R.
Singell, Larry D.
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Detailed data on individual applicants to a large public university are used to demonstrate that net price responsiveness decreases with need and ability. Enrollment effects are simulated and show a movement towards a high tuition/high aid (low tuition/low aid) policy significantly lowers (raises) tuition revenue with a modest increase (decrease) in the number of aid-eligible students.
Educational Leadership and Policy Analysis publications (MU)
Journal of Higher Education, 2009.