Template-Type: ReDIF-Paper 1.0
Author-Name:  Eduardo de Carvalho Andrade
Author-Name-First: Eduardo de Carvalho
Author-Name-Last: Andrade
Author-Name:  Rodrigo M. Moita
Author-Name-First: Rodrigo M.
Author-Name-Last: Moita
Title: Peer Effect and Competition in Higher Education
Abstract:  This paper analyzes the role of peer effect in the market for higher education. Peer effect is a key variable to understand why higher education
institutions set tuition in a way to maintain permanent excess demand. We use data on undergraduate business courses in Brazil to estimate a
discrete choice model of demand. The results show a strong impact of peer effect on students’ choice of school. We calculate the tuition increase
that would eliminate the excess demand. The results show that the upper limit of the total investment in peer effect is equal to US$ 770 thousands
per month for the freshmen year, or 5.13% of the current revenues.
Length:  21 pages
Creation-Date:  2009
Order-URL: https://repositorio.insper.edu.br/handle/11224/5780
File-URL: https://repositorio.insper.edu.br/handle/11224/5780
File-Format: text/html
File-Function: Full text
Number: 063
Handle: RePEc:aap:wpaper:063