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.
University Competition and Transnational Education: The Choice of Branch Campus / Poyago-theotoky, Joanna; Tampieri, Alessandro. - In: THE B.E. JOURNAL OF THEORETICAL ECONOMICS. - ISSN 1935-1704. - ELETTRONICO. - 16:(2016), pp. 739-766. [10.1515/bejte-2015-0052]
University Competition and Transnational Education: The Choice of Branch Campus
TAMPIERI, ALESSANDRO
2016
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.File | Dimensione | Formato | |
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