Higher-education bubble Blowing up grad school

The Economist:

THERE'S a debate going on (Sarah Lacy on Peter Thiel, William Deresiewicz, Annie Lowrey, Matthew Yglesias and even our own Schumpeter and Lexington) about whether the American higher-education market is failing, perhaps in the way the housing market failed (leaving average people with huge overhangs of debt for assets that turn out not to be worth what they thought they were worth), or perhaps in the way the health-care system is failing (sucking up an ever-bigger slice of the national income for services that don't seem to be providing significantly higher value). Brad DeLong writes that he doesn't understand why competition in higher education doesn't seem to work to keep prices down: why doesn't Yale cut tuition by $5,000 per year to suck top students away from Harvard, or why doesn't Berkeley offer an out-of-state programme for an extra $3,000 per year to suck top students away from the Ivies? And then he makes this very interesting point:

Posted by Jim Zellmer at May 14, 2011 1:26 AM
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