<p>thats an interesting question that i don’t think anyone really has a great answer for. if there is a scale of ranking vs tuition where the two are positively correlated, and schools had the ability to choose where on that scale they’d like to be located, what ultimately determines their placement?</p>
<p>three things come to mind:</p>
<p>1) legislation determines placement. for instance UWF/UNF are locked and cant grow if they tried. CC’s are also more or less immobile by decree.</p>
<p>2) who makes these decisions? politicians have an incentive to increase their ‘fame’ and leave a legacy in a sort of roundabout way, so in a very basic way you can think that politicians would generally be in favor of increasing rankings. administrators probably have the most to gain: higher tuition=>higher endowment=>more money=>higher ranking=>higher salary. thats a pretty easy thing to see. their actual behavior seems to reinforce this notion. their power almost guarantees that the school moves in this direction as long as their influence is greater than any influences that might prevent it (ie, recession, decree)</p>
<p>3) on a bigger scale, all universities 'ought to be better. over time you want to improve outcomes. you want to improve workforce with increased human capital, productivity, rate of innovation, etc. if all universities just stopped and said ‘no more money, we have enough, we’re doing fine’, i think we would have a problem because there would be fewer resources dedicated to improving human capital. in terms of game theory, if there are 2 schools that can either become better or stay the same, with both preferring to be better than the other, if one school chooses not to keep trying to get better, the other one will raise tuition and become a better institution. in that model theres only 1 nash equalibrium.</p>
<p>so i think partly inevitable that tuition will go up as the university continues its mission towards being more and more competitive. its very hard to make an argument for why it wouldn’t. from a societal standpoint, its probably better that way too, and that normative analysis is pretty easy to make.</p>
<p>i think another problem with the suggestion that UF just stay the same goes back to my 3rd point a little. if florida universities stop trying to keep pace with out of state universities, 2 things will happen. a) because the market for labor is very liquid and people move around a lot, as UF slips in the rankings (which would inevitably happen if it didn’t increase funding), and as the quality of graduates slowly declines, better educated people from out of state will move into florida. this puts florida graduates at a serious disadvantage. b) assuming that didn’t happen (and it would), and workers all stayed within their home states, the state of florida would fall even further behind in therms of the kind of jobs that it creates. i could elaborate on this, but i think its pretty obvious. if the average georgia graduate is smarter than the average florida graduate, and thus the workforces are similarly balanced, you would think that georgia’s economy and development would surpass florida’s.</p>