Effects of region on the establishment of public higher education prices in the US: Indications of possible suboptimal equilibria?

Using well-defined notions of region, panel data, and an econometric approach suited to estimating parameter coefficients on time-invariant regressors, this study finds that region is a highly influential factor for state-level public higher education prices even after controlling for other well-known drivers. Additionally, prices track the historical development of higher education in the US. Based on the history of higher education and regional norms, these estimates may be evidence of suboptimal tuition and fee equilibria resulting from implicit gaming. Substantively, a greater awareness of these historical and competitive forces and their effects on the cost of public higher education can be a substantial resource for policy-makers, institutional decision-makers, and researchers alike.