Mención de calidad: reducing inefficiencies in higher education markets when there are network externalities
This paper studies the decentralized choice of universities facing the decision to launch a new program at the graduate level (a master or a doctoral program) when students’ enrollment decisions are affected by network effects. Possible inefficiencies associated to the existence of network externalities on student utility are first identified. University competition eliminates some ineffciencies, although not all of them. Under these circumstances, a hallmarkf certifying the high quality of a program (known in Spain as Mención de Calidad) may prove useful to select the most efficient equilibrium.
Volume (Year): 30 (2006)
Issue (Month): 1 (January)
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