Pricing Models of Education in a Regulated Environment

Abstract

Pricing of education in a country like India is a tricky issue. The providers of education fall in different segments - fully owned and controlled by Government, partly owned and controlled by private sector and the Government and fully owned and controlled by the private sector. This article studies and evaluates the existing pricing model used by the Fee Fixation Committees of some major states in India for deciding the fees (price) of private unaided colleges. The study assumes importance because the Government is looking forward to more active participation from the private sector in education. The pricing model used by the Fee Fixation Committees is a good example of how the Government is trying to maintain a reasonable balance between the interests of the Colleges and the students. However, there can be some improvement areas that are discussed in this article. The article also explores the opportunities for professionals in finance in this big area involving Government, Institutions and students at large.