The international market for MBA qualifications: The relationship between tuition fees and applications
This paper explores the relationship between tuition fees charged by MBA programmes and the number of applications to these programmes, using a panel dataset comprising universities from countries across the world. Using Three-Stage-Least-Squares methods for simultaneous equations, we find a two-way relationship between tuition fees and applications: higher application numbers encourage universities to charge higher fees in the future, but higher fees in turn curtail application numbers. We find evidence that higher GMAT scores of existing students increase applications, as do higher post MBA salaries. Meanwhile, university and programme professional accreditations do not impact on student application choices, nor do alumni ratings of programme quality. Published MBA programme rankings appear to have little impact on applications, and where an effect can be identified, it appears that a better ranking discourages applications. Only US News rankings have a significant effect on applicants to US MBA programmes.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Michael Luca & Jonathan Smith, 2013.
"Salience in Quality Disclosure: Evidence from the U.S. News College Rankings,"
Journal of Economics & Management Strategy,
Wiley Blackwell, vol. 22(1), pages 58-77, 03.
- Michael Luca & Jonathan Smith, 2011. "Salience in Quality Disclosure: Evidence from the U.S. News College Rankings," Harvard Business School Working Papers 12-014, Harvard Business School.
- Grove, Wayne A. & Hussey, Andrew, 2014. "Returns to MBA quality: Pecuniary and non-pecuniary returns to peers, faculty, and institution quality," Labour Economics, Elsevier, vol. 26(C), pages 43-54.
- Ray, Subhash C. & Jeon, Yongil, 2008.
"Reputation and efficiency: A non-parametric assessment of America's top-rated MBA programs,"
European Journal of Operational Research,
Elsevier, vol. 189(1), pages 245-268, August.
- Subhash C. Ray & Yongil Jeon, 2003. "Reputation and Efficiency: A Nonparametric Assessment of America's Top-Rated MBA Programs," Working papers 2003-13, University of Connecticut, Department of Economics.
- Wayne A. Grove & Andrew Hussey, 2011. "Returns To Field Of Study Versus School Quality: Mba Selection On Observed And Unobserved Heterogeneity," Economic Inquiry, Western Economic Association International, vol. 49(3), pages 730-749, 07.
- Griffith, Amanda & Rask, Kevin, 2007. "The influence of the US News and World Report collegiate rankings on the matriculation decision of high-ability students: 1995-2004," Economics of Education Review, Elsevier, vol. 26(2), pages 244-255, April.
- Savoca, Elizabeth, 1990. "Another look at the demand for higher education: Measuring the price sensitivity of the decision to apply to college," Economics of Education Review, Elsevier, vol. 9(2), pages 123-134, June.
- Dennis Epple & Richard Romano & Holger Sieg, .
"Admission, Tuition, and Financial Aid Policies in the Market for Higher Education,"
GSIA Working Papers
2003-04, Carnegie Mellon University, Tepper School of Business.
- Dennis Epple & Richard Romano & Holger Sieg, 2006. "Admission, Tuition, and Financial Aid Policies in the Market for Higher Education," Econometrica, Econometric Society, vol. 74(4), pages 885-928, 07.
- Amy Ellen Schwartz & Benjamin Scafidi, 2004. "What's Happened to the Price of College?: Quality-Adjusted Net Price Indexes for Four-Year Colleges," Journal of Human Resources, University of Wisconsin Press, vol. 39(3), pages 723-745.
- Peter Arcidiacono & Jane Cooley & Andrew Hussey, 2008. "The Economic Returns To An Mba," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 49(3), pages 873-899, 08.
- Andrew Abbott & Derek Leslie, 2004. "Recent Trends in Higher Education Applications and Acceptances," Education Economics, Taylor & Francis Journals, vol. 12(1), pages 67-86.
- K T Soo & C F Elliott, 2008.
"Does price matter? Overseas students In UK higher education,"
596594, Lancaster University Management School, Economics Department.
- Soo, Kwok Tong & Elliott, Caroline, 2010. "Does price matter? Overseas students in UK higher education," Economics of Education Review, Elsevier, vol. 29(4), pages 553-565, August.
- Nelson, Phillip, 1970. "Information and Consumer Behavior," Journal of Political Economy, University of Chicago Press, vol. 78(2), pages 311-29, March-Apr.
- Neill, Christine, 2009. "Tuition fees and the demand for university places," Economics of Education Review, Elsevier, vol. 28(5), pages 561-570, October.
- Bezmen, Trisha & Depken II, Craig A., 1998.
"School Characteristics and the Demand for College,"
Economics of Education Review,
Elsevier, vol. 17(2), pages 205-210, April.
- Holtz-Eakin, Douglas & Newey, Whitney & Rosen, Harvey S, 1988.
"Estimating Vector Autoregressions with Panel Data,"
Econometric Society, vol. 56(6), pages 1371-95, November.
- Tom Doan, . "RATS program to demonstrate IV estimation of VAR in panel data," Statistical Software Components RTZ00185, Boston College Department of Economics.
- Christopher F Baum & Mark E. Schaffer & Steven Stillman, 2007. "Enhanced routines for instrumental variables/generalized method of moments estimation and testing," Stata Journal, StataCorp LP, vol. 7(4), pages 465-506, December.
- DANIEL P. McMILLEN & LARRY D. SINGELL & GLEN R. WADDELL, 2007. "Spatial Competition And The Price Of College," Economic Inquiry, Western Economic Association International, vol. 45(4), pages 817-833, October.
- Harford, Jon D. & Marcus, Richard D., 1986. "Tuition and U.S. private college characteristics: The hedonic approach," Economics of Education Review, Elsevier, vol. 5(4), pages 415-430, August.
- Louise A. Heslop & John Nadeau, 2010. "Branding MBA programs: the use of target market desired outcomes for effective brand positioning," Journal of Marketing for Higher Education, Taylor & Francis Journals, vol. 20(1), pages 85-117, June.
- Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
- Lucas, Robert E B, 1975. "Hedonic Price Functions," Economic Inquiry, Western Economic Association International, vol. 13(2), pages 157-78, June.
- Sarah Hall & Lindsey Appleyard, 2009. "'City of London, City of Learning'? Placing business education within the geographies of finance," Journal of Economic Geography, Oxford University Press, vol. 9(5), pages 597-617, September.
- Montgomery, Mark, 2002. "A nested logit model of the choice of a graduate business school," Economics of Education Review, Elsevier, vol. 21(5), pages 471-480, October.
- Hussey, Andrew, 2011. "The effect of ethics on labor market success: Evidence from MBAs," Journal of Economic Behavior & Organization, Elsevier, vol. 80(1), pages 168-180.
When requesting a correction, please mention this item's handle: RePEc:eee:ecoedu:v:34:y:2013:i:c:p:162-174. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.