Higher education is a positional good. That means you’re not paying to learn, you’re paying to be ranked among the top X%. By definition only so many people can be in the top X%, so it’s an arms race dynamic just bidding up the price of education.
That’s also why Harvard doesn’t create a chain of schools like the for-profits. They’re not better at education. They’re selling exclusivity.
Higher education is a positional good. That means you’re not paying to learn, you’re paying to be ranked among the top X%. By definition only so many people can be in the top X%, so it’s an arms race dynamic just bidding up the price of education.
That’s also why Harvard doesn’t create a chain of schools like the for-profits. They’re not better at education. They’re selling exclusivity.