Multi-dimensional skills, specialization, and oligopolistic competition in higher education

• 成果类型: Article
• 署名作者: Sarpca, Sinan
• 署名单位: Koc University
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2010.06.012
• 发表日期: 2010
• 页码: 800-811
• 关键词: Higher education; School competition; peer effects; specialization; Multi-dimensional skills

摘要

This paper develops a differentiated products model of school competition that distinguishes among different dimensions that matter in the skill acquisition process. The model predicts that when identical schools compete for students, specialization may arise as a competition strategy. This serves rich students' education goals well. Poorer students, however, may attend schools with specializations that do not cater to their relative strengths. By doing so, these poorer students complement the weaknesses of the richer students through peer effects and receive financial aid in return. The empirical analysis provides strong support for the model's predictions about within-school implications of specialization. (C) 2010 Elsevier B.V. All rights reserved.