@widgetmidget But if you are selling your seats to OOS/international to raise money, why does it matter if it’s the wealthy? The 2 - 3K a year difference is not going to make or break the quality of your incoming OOS/International applicants, especially if you use the extra revenue to lower the number of OOS/international students.
UCLA and UCB are around 40% OOS/International. Some other UCs much less. While the budgets are not so simple in terms of redirecting revenue, in the big picture, more OOS/international students could be redirected to other campuses, more IN STATE students can be admitted to UCB, UCLA, UCSD, UCSB.
As far as Michigan, they may have hit the top, but they still have plenty of applicants - and charge 6500 more a year than the UCs. From an article last year: http://www.mlive.com/news/ann-arbor/index.ssf/2015/02/u-m_out-of-state_residents.html
"Despite annual hikes and the fact that U-M is one of the most expensive public universities in the country for non-resident students to attend, applications from non-Michigan students are pouring in at record rates.
“With the out-of-state tuition, we can be a little bit more responsive to market forces. We had a remarkable increase in the number of applications and the quality (of the students) is also pretty remarkable. But the fact of the matter is that we have to be restrained by the market also. We can’t price ourselves out of the market,” he said."
Add to that many of your other competing universities for international students: BU, NYU, UVa, USC, UPenn, Cornell, Brown, Columbia, UChicago, Duke, Northeastern, CMU etc. charge as much or even more and I would bet the UCs - certainly the “top 4” engineering programs (and probably all UCSB, UCSD, UCLA and UCB degrees) could absorb a 3k increase with little, if any, effect.
Remember, UCLA and UCB get close to 100k applicants. Adcoms and Deans from UCB COE to UCLA have stated they could easily fill two classes with qualified students. A look at the results thread show just a few of the many qualified students that are waitlisted or denied. There are more good students applying to the UCs than there are slots.
If your OOS/international admits are about revenue, then you should maximize the revenue.