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Mención de calidad: reducing inefficiencies in higher education markets when there are network externalities

Author

Listed:
  • Elena del Rey

    (Universitat de Girona)

  • Xavier Wauthy

    (Facultad Universitaria de San Louis)

Abstract

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.

Suggested Citation

  • Elena del Rey & Xavier Wauthy, 2006. "Mención de calidad: reducing inefficiencies in higher education markets when there are network externalities," Investigaciones Economicas, Fundación SEPI, vol. 30(1), pages 89-115, January.
    • Handle: RePEc:iec:inveco:v:30:y:2006:i:1:p:89-115
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    Cited by:

    1. Elias Carroni & Berardino Cesi & Dimitri Paolini, 2016. "Local University Supply and Distance: A Welfare Analysis with Centralized and Decentralized Tuition Fees," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 2(2), pages 239-252, July.
    2. Marisa Hidalgo Hidalgo & Guadalupe Valera Blanes, 2013. "University merging process," Working Papers. Serie AD 2013-01, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    3. Berardino Cesi & Dimitri Paolini, 2014. "Peer Group and Distance: When Widening University Participation is Better," Manchester School, University of Manchester, vol. 82, pages 110-132, December.

    More about this item

    Keywords

    Analysis of education; government policy.;

    JEL classification:

    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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