The Impact of University Deregulation on Curriculum Choice
Many European universities face demands to provide excellent education and to enrol more students at the same time. With scarce financial resources policy makers concentrate on regulations (especially admission policies, tuition fees, and the introduction of competition) to meet the different objectives. This paper analyses the curriculum choices of universities in different regulatory regimes. Universities benefit from the value of the human capital of their graduates. Students are risk-averse. They differ with respect to ability. The deregulation of tuition fees sets an incentive for universities to account for students' preferences. Complete deregulation induces a hierarchical stratification of ex-ante identical universities.
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