The International Market for MBA Qualifications
This paper explores the relationship between 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 fees and applications: higher application numbers encourage universities to charge higher fees in the future, but higher fees in turn curtail application numbers. Of particular note are the results pertaining to additional explanatory variables that potentially represent MBA programme quality signals to applicants. 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.
|Date of creation:||2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +44 (1524) 594601
Fax: +44 (1524) 594244
Web page: http://www.lancaster.ac.uk/lums
More information through EDIRC
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.:
- Trisha Bezmen & Craig A. Depken II, 1996.
"School Characteristics and the Demand for College,"
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- Nelson, Phillip, 1970. "Information and Consumer Behavior," Journal of Political Economy, University of Chicago Press, vol. 78(2), pages 311-29, March-Apr.
- 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.
- 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.
- 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.
- K T Soo & C F Elliott, 2008. "Does price matter? Overseas students In UK higher education," Working Papers 596594, Lancaster University Management School, Economics Department.
- 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.
- 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..
- 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.
- 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.
- Lucas, Robert E B, 1975. "Hedonic Price Functions," Economic Inquiry, Western Economic Association International, vol. 13(2), pages 157-78, June.
- 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.
- Neill, Christine, 2009. "Tuition fees and the demand for university places," Economics of Education Review, Elsevier, vol. 28(5), pages 561-570, October.
- 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.
When requesting a correction, please mention this item's handle: RePEc:lan:wpaper:24284581. 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: (Maurizio Zanardi)
If references are entirely missing, you can add them using this form.