Peer Effect and Competition in Higher Education

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dc.contributor.authorAndrade, Eduardo de Carvalho
dc.contributor.authorMoita, Rodrigo Menon Simões
dc.contributor.authorSilva, Carlos E. L.
dc.coverage.cidadeSão Paulopt_BR
dc.coverage.paisBrasilpt_BR
dc.creatorAndrade, Eduardo de Carvalho
dc.creatorMoita, Rodrigo Menon Simões
dc.creatorSilva, Carlos E. L.
dc.date.accessioned2023-07-14T15:11:57Z
dc.date.available2023-07-14T15:11:57Z
dc.date.issued2009
dc.description.abstractThis paper analyzes the role of peer effect in the market for higher education. Peer effect is a key variable to understand why higher education institutions set tuition in a way to maintain permanent excess demand. We use data on undergraduate business courses in Brazil to estimate a discrete choice model of demand. The results show a strong impact of peer effect on students’ choice of school. We calculate the tuition increase that would eliminate the excess demand. The results show that the upper limit of the total investment in peer effect is equal to US$ 770 thousands per month for the freshmen year, or 5.13% of the current revenues.
dc.description.otherThis paper analyzes the role of peer effect in the market for higher education. Peer effect is a key variable to understand why higher education institutions set tuition in a way to maintain permanent excess demand. We use data on undergraduate business courses in Brazil to estimate a discrete choice model of demand. The results show a strong impact of peer effect on students’ choice of school. We calculate the tuition increase that would eliminate the excess demand. The results show that the upper limit of the total investment in peer effect is equal to US$ 770 thousands per month for the freshmen year, or 5.13% of the current revenues.pt_BR
dc.format.extent20 p.pt_BR
dc.format.mediumDigitalpt_BR
dc.identifier.issueBEWP 063/2009
dc.identifier.urihttps://repositorio.insper.edu.br/handle/11224/5780
dc.language.isoInglêspt_BR
dc.publisherInsperpt_BR
dc.publisherIBMEC São Paulopt_BR
dc.relation.ispartofseriesInsper Working Paperpt_BR
dc.rights.licenseO INSPER E ESTE REPOSITÓRIO NÃO DETÊM OS DIREITOS DE USO E REPRODUÇÃO DOS CONTEÚDOS AQUI REGISTRADOS. É RESPONSABILIDADE DO USUÁRIO VERIFICAR OS USOS PERMITIDOS NA FONTE ORIGINAL, RESPEITANDO-SE OS DIREITOS DE AUTOR OU EDITORpt_BR
dc.subject.keywordsHigher Educationpt_BR
dc.subject.keywordsPeer Effectpt_BR
dc.subject.keywordsDiscrete Choicept_BR
dc.subject.keywordsMultinomial Logitpt_BR
dc.titlePeer Effect and Competition in Higher Educationpt_BR
dc.typeworking paper
dspace.entity.typePublication
local.subject.cnpqCiências Sociais Aplicadaspt_BR
local.typeWorking Paperpt_BR

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