Value based pricing for MBA fees
Is it possible for B-schools to have value based pricing for the MBA fees and not a fixed fees plus scholarship model? The students need not have to pay any fees upfront. After they have graduated and secured jobs to their satisfaction, they can choose to give a part of their salary in proportion to what other batch-mates are making, back to their Alma-mater for the next 2-3 years.
Cons: 1. Defining value in short term and long term is very different. Someone may just try to game the system by joining an NGO for the liability period and then work for-profit afterwards. 2. It will also be tough to determine what was the initial state of a student when joining college and what is the level of expertise he/ she has achieved after graduation and how much of that is attributable to college. 3. This proposition will also discourage individual excellence as the higher earning grad is charged more.
What are the other cons that you can think of ?
Thanks.
but value is not only expected salary - the money - at the same time you pay money to business school you don't pay them value
B-school is just a platform that creates value for all its participants by allowing free exchange of ideas. So, the value gained is intangible but if we want to make it tangible, we can say that due to refined outlook and a degree, value is the expected salary. (assuming market has no asymmetry of information) Secondly, the value for b-school is judged by what alums have achieved. For that value to be created, we pay money which is used for capital (library, classrooms, dorms) and operating (salary to profs, etc) expenditures incurred during stay at school. Apart from salary if intellectual development is the value you are considering, then also there is some tangible money gone into creating that.
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