Privilege of university should cost more: Oxford chancellor

[brendan]

http://www.theaustralian.news.com.au/story/0,,24461590-12332,00.html?from=public_rss

[Collin Li]

My view is that universities should be user-pays. It optimises social utility. How do I know this?

Well, if the costs (including borrowing) of university exceed the benefits of university, then I will not go. However, this is not true for a subsidised or free system. Why is this cost-benefit analysis important? Well, if I'm not benefiting more than the costs, then who else will? It doesn't benefit me at all if my neighbour takes a university degree or not. The costs will always remain, it's just a matter of who pays it. If I'm made to pay my fees, I'm made to ensure that social utility is maximised, not because I'm altruistic, but because I'm greedy and utility maximising for myself.

Perhaps I benefit when my neighbours kids are going to primary school - it will teach them values that will help to keep them orderly, but there is very little justification for this on the tertiary level.

As for the price cap that governments put on universities - I am against these. There may be higher priced trades where people could gain. The tertiary education sector is a heterogenous industry, and it can cater for lower priced education and higher priced education.