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Pricing Policies at Public Universities in Hungary

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  • Rappai, Gábor
  • Rekettye, Gábor

Abstract

The structure of higher education is constantly changing world-wide - including Hungary. The traditional view of Higher Education as a ‘public good' financed by the state, is weakening since it is becoming increasingly obvious that governments cannot afford to finance the growing demand for Higher education. The consequence of these trends in Hungary is that, whilst some students are financed by the government, the rest pay tuition fees. The paper discusses the possible methods which a public University may use when calculating its tuition fee for a given field of study. The advantages and disadvantages of cost-based pricing, ongoing pricing, and value-based pricing are discussed. The study introduces a model for calculating the life-cycle value of a degree, which may help in a comparison of the pricing methods of the competing institutions

Suggested Citation

  • Rappai, Gábor & Rekettye, Gábor, 2011. "Pricing Policies at Public Universities in Hungary," Apas Papers 350, Academic Public Administration Studies Archive - APAS.
  • Handle: RePEc:nsu:apasro:350
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    File URL: http://www.apas.admpubl.snspa.ro/handle/2010/349
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    References listed on IDEAS

    as
    1. Havas, Attila, 2008. "Universities and the emerging new players: Building futures for higher education," MPRA Paper 66333, University Library of Munich, Germany.
    2. Robert J. Gary-Bobo & Alain Trannoy, 2008. "Efficient Tuition Fees and Examinations," Journal of the European Economic Association, MIT Press, vol. 6(6), pages 1211-1243, December.
    3. Vandenberghe, Vincent & Debande, Olivier, 2008. "Refinancing Europe's higher education through deferred and income-contingent fees: An empirical assessmentusing Belgian, German & UK data," European Journal of Political Economy, Elsevier, vol. 24(2), pages 364-386, June.
    4. Stephen Easton & Duane Rockerbie, 2008. "Optimal government subsidies to universities in the face of tuition and enrollment constraints," Education Economics, Taylor & Francis Journals, vol. 16(2), pages 191-201.
    Full references (including those not matched with items on IDEAS)

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    Keywords

    cost-based pricing; Public Universities; tuition fee; ongoing pricing; value of a degree;

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