Discussion Papers, Center for European Governance and Economic Development Research 120
This paper presents a model showing an incentive for a group of people to vote for higher tuition fees, even if these fees have no quality effect. The incentive is based on a non-monetary influence on utility, namely the social status or prestige of graduating. The basic assumption is that the higher the prestige is, the lower the number of people studying. In a static equilibrium, it is shown that a group of wealthier and more able people can exist that attempts to prevent others from studying.