Price and quality effects on the demand for U.S. graduate business programs

Robert Jantzen

International Advances in Economic Research, 2000, vol. 6, issue 4, 730-740

Abstract: This study identifies the factors that influence the demand for U.S. graduate business programs, using the entire population of schools as the basis for analysis. The study found that higher education institutions, at least graduate business programs, are not immune to the market forces of cost, quality, and trend. Schools that provide better value enjoy success, and those that do not, endure setbacks. Program demand was most sensitive to the tuition change and was moderately elastic. Schools that increased their tuition faster than others suffered significant enrollment declines. In addition, programs that were either accredited by the International Association for Management Education, publicly funded schools, or located in regions with generally rising enrollments enjoyed increased enrollments. Those that were either not accredited, private schools, or less favorably located suffered declines. Copyright International Atlantic Economic Society 2000

Date: 2000
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DOI: 10.1007/BF02295383

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