We develop a feedback theory of tuition inflation. Our analysis shows that competition between colleges for reputation, students, and resources triggers tuition escalation. The article makes several recommendations for controlling cost inflation. It also demonstrates how to apply feedback analysis to economic problems, which is the domain of feedback economics.
Publication
Pavlov, O.V. and E. Katsamakas. “Tuition too high? Blame competition.” Journal of Economic Behavior & Organization, 213, 2023: 409-431.