[O]ne theory proposes that charging different prices actually - TopicsExpress

[O]ne theory proposes that charging different prices actually drives up the cost of college because it makes the institutions dependent on tuition from wealthy students to cross-subsidize tuition discounts for poorer students. Those wealthy students expect a certain quality of life at their colleges, one that calls for more spending on the part of those colleges and universities. Thus, the underlying price of the college experience rises, which means higher tuition for everybody. I always like when I run into new theories. Thats a really clever and intuitively plausible reason for some of the wasteful expenses done by colleges.

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