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The good MOOC and the universities

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  • Emilie Dargaud
  • Fréedéeric Jouneau-Sion

Abstract

We propose a model of competition between online and brick-and-mortar higher education. Students pay a transportation cost to attend the brick-and-mortar supplier's courses, whereas the online course is free of transportation cost but involves a fixed and homogeneous disutility. We derive the optimal fee policy for a single university as a function of its location and the fixed cost of online delivery. We also study the impact of distance learning on competition between two universities. We discuss equilibria and market sharing in non-regulated and regulated settings. Finally, we address policy issues such as optimal provision of MOOCs.

Suggested Citation

  • Emilie Dargaud & Fréedéeric Jouneau-Sion, 2020. "The good MOOC and the universities," Education Economics, Taylor & Francis Journals, vol. 28(5), pages 474-490, September.
    • Handle: RePEc:taf:edecon:v:28:y:2020:i:5:p:474-490
    DOI: 10.1080/09645292.2020.1775182
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    References listed on IDEAS

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    1. Paul Belleflamme & Julien Jacqmin, 2016. "An Economic Appraisal of MOOC Platforms: Business Models and Impacts on Higher Education," CESifo Economic Studies, CESifo, vol. 62(1), pages 148-169.
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    6. Jeroen Hinloopen, 2002. "Price regulation in a spatial duopoly with possible non-buyers," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 36(1), pages 19-39.
    7. Abhijit V. Banerjee & Esther Duflo, 2014. "(Dis)organization and Success in an Economics MOOC," American Economic Review, American Economic Association, vol. 104(5), pages 514-518, May.
    8. Caroline M. Hoxby, 2014. "The Economics of Online Postsecondary Education: MOOCs, Nonselective Education, and Highly Selective Education," American Economic Review, American Economic Association, vol. 104(5), pages 528-533, May.
    9. Xu, Di & Jaggars, Shanna Smith, 2013. "The impact of online learning on students’ course outcomes: Evidence from a large community and technical college system," Economics of Education Review, Elsevier, vol. 37(C), pages 46-57.
    10. d'Aspremont, C & Gabszewicz, Jean Jaskold & Thisse, J-F, 1979. "On Hotelling's "Stability in Competition"," Econometrica, Econometric Society, vol. 47(5), pages 1145-1150, September.
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    13. Paul BELLEFLAMME & Julien JACQMIN, 2014. "Les plateformes MOOCs. Menaces et opportunités pour l’enseignement universitaire," Regards économiques 110, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
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    Cited by:

    1. Han, Haipeng & Lien, Donald & Lien, Jaimie W. & Zheng, Jie, 2022. "Online or face-to-face? Competition among MOOC and regular education providers," International Review of Economics & Finance, Elsevier, vol. 80(C), pages 857-881.

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