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The Park Place Economist

Authors

Brett Roush '97

Abstract

A student embarking on a college search is astounded at the number of higher learning institutions available -- an initial response may be to consider their market structure as one of perfect competition. Upon fkrther consideration, though, one sees this is inaccurate. In fact, the market structure of higher learning incorporates elements of monopolistic competition, oligopoly, and monopoly. An institution may not explicitly be a profit maximizer. However, treating it as such allows predictions of actions to be made by applying the above three market structures. Such predictions include the quantity of education offered as well as advertising tendencies (Section 11), scrutiny of competitors (Section III), and price discrimination (Section IV).

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