Interesting article in NY Times Getting Out of Discount Game, Small Colleges Lower the Pricethat said some colleges are getting out of the tuition discounting game. For example, instead of having a list price tuition of $35,000 and average aid of $13,000 a college would charge everyone $22,000. While it makes the true price more transparent to students and their parents, some students are going to benefit while others may lose out. Colleges who follow this strategy could see their tuition revenue decline since they can no longer price discriminate. Students should, on average, be better off since they recapture some of the consumer surplus from the college.
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