Thursday, March 03, 2011

game theory/tuition fees

(found some of the following links from a facebook post) this link to an attempt to write down a game that expresses the setting of tuition fees. In the comments, this link to a speech by David Willetts "The ideas that are changing politics" (dated 20.2.08, so now a couple of years ago) in which he is enthusiastic about game theory (follow the link to PDF of the speech at the bottom of the page). This new article “What are David Willetts' options for limiting spending on student loans?” is worth reading by anyone who would like to keep track of this issue. The previous article gives the text of a speech on universities made by Willetts; the speech mentions game theory, and so too does one of the annotations that have been inserted. Here’s a quote from the speech:
Of course, academics approach these issues with great sophistication, and I have been warned that we face a dilemma from game theory in which the incentives for individual institutions are different from the interests of the sector as a whole. But it's not the dilemma in its classic form, because this is not a one-off. You need to think of subsequent years – not just in terms of funding levels but also the challenges you will face from new competitors if you come in at such a high fee level. And you also need to think of the collective interests of students.

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