Tuesday, November 24, 2009

Ayres v. Trujillo

by Andrew Gillen

The 32% increase in tuition in California is spurring quite a bit of discussion. One tangent that keeps coming up the idea of using price discrimination to fund discounts for low income students.

Ian Ayres thinks that this is a good idea.
Higher education is the very rare market where the seller says “Tell me in detail about your ability to pay, and I’ll tell you what your (net) price will be.” But instead of maximizing firm revenue, the goal is to enhance equity.
Alfonso Trujillo doesn't.
Subsidizing top-tier universities in the hope of getting more underprivileged students to attend is tantamount to subsidizing top-tier department stores in the hope that some underprivileged consumers will be clothed. In the end, both results are predictable: higher prices, higher status for those who purchase the product, and an inefficient method of helping the poor.


Cowboy said...

For almost three years, CCAP has been presenting meaningful information while others have engaged CCAP in meaningless debates with logic so twisted one would have to be a contortionist to make sense of such twisted logic.

For approximately two years, one person in particular has done nothing to contribute to civil discourse in any manner that can be considered socially redeeming. I have wondered how a person could be so hostile and hateful over such a long period of time. Taken together with the personal attacks and prolonged negativity, one can conclude only that this person is a mental basket case. The comments by capeman/sciencedoc are old, tired and worn out. I believe such comments drive people away. And that is where capeman/sciencedoc has succeeded. capeman/sciencedoc has muddled CCAP's message.

There is saying that if, "If you don't like what you're watching, change the channel." I am changing the channel. CCAP has unintentionally convinced me that the last thing colleges and universities need is more money. I thank CCAP for helping me understand Higher Ed - it sure isn't what I had pictured in my mind pre-CCAP. Rich, you have been criticized and called a hypocrite because you worked in the system and now work to expose the flaws in the system. You follow in the footsteps of John Z. DeLorean (On a Clear Day You Can See General Motors), John C. Bogle (The Battle for the Soul of Capitalism), and many others.

If one makes an automobile purchase and has problems with the automobile; Are they expected to remain silent because they continued to drive the car after experiencing problems? Quite the contrary, they should advise others of their experience so the manufacturer of the car will address the problems. I really can't reconcile why that is so hard for some to understand.

I would also like to thank capeman/sciencedoc for exposing the type of people that are teaching our children. You have convinced me that making donations to a college or university would be immensely contrary to my values and belief system. I must say that I am astounded that such a dangerous and untoward person would be allowed to teach anyone or anything. However I do believe there are great opportunities for you with the Taliban.

Finally, in the interest of full disclosure, I am associated with the Overlook Project. I have put a lid on their findings regarding capeman/sciencedoc as it is not our job to regulate CCAP's blog.

Farewell CCAP.

Centenial College said...

I agree with Ian Ayres price discrimination and fund discounts can attracts students so the education standards increased

It's me opinion (A student on community college)