University Competition and Transnational Education: The Choice of Branch Campus

Joanna Poyago-Theotoky and Alessandro Tampieri

The B.E. Journal of Theoretical Economics, 2016, vol. 16, issue 2, 739-766

Abstract: We present a theoretical framework in which an elitist and a non-elitist university in a developed country compete by choosing admission standards and deciding whether or not to open a branch campus in a developing country. Students from a developing country attend university if either a branch campus is opened or, they can afford to move to the developed country. We find that the elitist university is more likely to open a branch campus. This result is reversed if the gain, in terms of prestige, to attend the home campus of the elitist university more than offsets a student’s mobility costs. A rise in the graduate wage increases the incentive for opening a branch campus, although this incentive is stronger for the elitist university.

Keywords: university competition; branch campus; admission standards; transnational education (search for similar items in EconPapers)
JEL-codes: F23 I23 L13 (search for similar items in EconPapers)
Date: 2016
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Related works:
Working Paper: University Competition and Transnational Education: The Choice of Branch Campus (2015)
Working Paper: University Competition and Transnational Education: The Choice of Branch Campus (2014)
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DOI: 10.1515/bejte-2015-0052

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