The bigger challenge to business schools comes from fully online degrees.
Georgia Tech in Atlanta has taken its $40,000 masters of computer science degree online and cut the price by 84 per cent, hoping to increase demand from 300 students to 10,000.
Surely putting degrees online, with high fixed costs but near zero marginal costs, endangers the price premium attached to face-to-face education?
The UCLA Anderson School of Management at does not think so. It is currently running traditional and online versions of its highly ranked Femba (fully employed MBA) side-by-side for working professionals, with the same admission standards, faculty and course content, and charging the same price for both.