The availability of products in the education market is directly correlated to pricing. Defining products and units of output is directly related to pricing. Market forces in the education market are overcoming the significance of collusion theory and competition is rising. Pricing is an important aspect in the education market in the United States. In the study of education market in US, definition of productions and units of output affects competitiveness and brand equity profoundly (Dodgson et al 2009). Cartels within the traditional university systems face direct challenges from virtual universities (Kreps 2004).
The education market is increasingly becoming competitive leading to reduced prices in traditional degree programs as new programs take the center stage (Newman et al 2004). Programs and units are packaged in affordable and convenient methods e g the decrease in the cost of traditional courses and demand in virtual courses grows. (Dodgson et al 2009). Careful decisions are focusing on the nature of courses offered and the place of offering them. The universities are getting involved in corporate social responsibility. Technology has overcome geographical barriers through electronic learning (Tschang & Della 2001).
The modern US universities are developing other responsive measures of raising revenues and quality of services in an increasingly competitive education market. In conclusion, the American education market is experiencing reforms in product definition and output units. This is an effort to respond to the dynamic nature of the American education market arising to increasingly stiff competition. Product definitions have altered the market forces as cartels appear to be losing market share to the market entrants. c. Is competition in the education market a good thing?
Use economic concepts seen in the lecture to explain your answer. Competition is rivalry among different universities to gain market share. Competition is a major characteristic of the liberal markets. As oligopoly declines, competition in the American education market is rising. This is because of the economic impact of the competitive and for-profit learning institutions in the education market. Competition is leading to numerous gains to the targeted markets (Newman et al 2004). The traditional universities have depended on collusion. Collusion refers to the case where traditional universities undertake actions that minimize a competitive response.
The traditional universities have been heavily dependent on tacit collusion because of the large market education market they control.
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