Differential Pricing in the Wake of Tuition Deregulation at Texas Public Universities

• In Event: Tuition Pricing Policy and Underrepresented Students

Abstract

In 2003, the Texas Legislature passed legislation that permitted the governing boards of the state’s public universities to set tuition levels (tuition deregulation). This paper attempts to document and understand whether and how institutions adopt differential pricing when they are given more autonomy in setting prices. We have assembled tuition and fee data since 2000 from various sources. The results showed that the timing of implementation and expansion of differential pricing, as well as the range of programs affected and magnitude of the changes, varied across institutions. As these patterns have not been documented previously, this study provides useful facts about pricing practices in Texas, as well as suggestive case-study evidence for states that have implemented or considered tuition deregulation.

Authors

• Jeongeun Kim, University of Michigan

• Kevin Stange