For Whom the Pell Tolls: Market Power, Tuition Discrimination, and the Bennett Hypothesis

University of Oregon Economics Working Paper No. 2003-12

27 Pages Posted: 18 Oct 2003  

Larry D. Singell Jr.

University of Oregon - Department of Economics

Joe A. Stone

University of Oregon - Department of Economics

Date Written: April 2003

Abstract

Are federal Pell grants "appropriated" by universities through increases in tuition - consistent with what is known as the Bennett hypothesis? Based on a panel of 71 universities from 1983 to 1996, we find little evidence of the Bennett hypothesis among either public or lower-ranked private universities. For top-ranked private universities, though, increases in Pell grants appear to be more than matched by increases in net tuition. The behavior most consistent with this result is price discrimination that is not purely redistributive from wealthier to needier students.

Suggested Citation

Singell, Larry D. and Stone, Joe A., For Whom the Pell Tolls: Market Power, Tuition Discrimination, and the Bennett Hypothesis (April 2003). University of Oregon Economics Working Paper No. 2003-12. Available at SSRN: https://ssrn.com/abstract=436507 or http://dx.doi.org/10.2139/ssrn.436507

Larry D. Singell Jr. (Contact Author)

University of Oregon - Department of Economics ( email )

Eugene, OR 97403
United States
541-346-4672 (Phone)

Joe A. Stone

University of Oregon - Department of Economics ( email )

114 Friendly Hall
Eugene, OR 97403
United States
541-346-3902 (Phone)

Paper statistics

Downloads
239
Rank
103,939
Abstract Views
2,990