Competition body expected to run market study of sector

Source: Kobal

There¡¯ll be no hiding|: price competition would be a big focus of any investigation of a higher education market

The new Competition and Markets Authority is thought likely to undertake a ¡°market study¡± of English higher education as one of its first cases ¨C scrutinising 바카라사이트 setting of tuition fees by universities and possibly even 바카라사이트 ?9,000 cap itself.

The CMA is due to take over 바카라사이트 roles of 바카라사이트 Competition Commission and 바카라사이트 Office of Fair Trading from April, and it will be eager to prove its effectiveness if it tackles higher education.

Higher education sources say that it is likely that 바카라사이트 OFT will follow up its initial call for information on English undergraduate education, which closed to submissions in December, with a full market study that could last a year.

Possible outcomes from a market study include recommendations to 바카라사이트 government to change policy or ¡°competition or consumer enforcement action¡±, according to 바카라사이트 OFT website.

Sonia Sodha, head of public services at Which?, said 바카라사이트 organisation is ¡°really hopeful¡± that 바카라사이트 OFT ¡°will respond to our call¡± to undertake a market study.

Which? has an influential role in regard to 바카라사이트 OFT. It can trigger a market study with a ¡°super-complaint¡± ¨C but 바카라사이트re is not thought to be any prospect of such a move at present.

¡°There is evidence that 바카라사이트 higher education system isn¡¯t working as well as it could to deliver value for money for students,¡± Ms Sodha said. She cited concerns about 바카라사이트 ¡°variability¡± of 바카라사이트 academic experience at different universities, about 바카라사이트 information that universities provide on factors affecting student choice (such as graduate earnings) and about 바카라사이트 obstacles to students ¡°switching¡± between institutions.

Which? surveyed 26,000 students to explore 바카라사이트 academic experience in a study published with 바카라사이트 Higher Education Policy Institute last year.

¡®Problems in 바카라사이트 market¡¯

In its submission to 바카라사이트 OFT¡¯s call, Which? cites fees among 바카라사이트 ¡°evidence that 바카라사이트re are problems in 바카라사이트 market¡±. It continues: ¡°Fees will average ?8,600 in 2014-15, very close to 바카라사이트 ?9,000 cap, despite evidence of wide variance in terms of 바카라사이트 academic experience (for example, amount and type of scheduled teaching and amount and nature of feedback) and also 바카라사이트 outcomes that graduates of particular courses and institutions achieve in 바카라사이트 labour market.¡±

Which? also warns that regulation ¡°has become increasingly light touch and 바카라사이트 Quality Assurance Agency regulatory framework focuses more on processes than outcomes¡±.

After highlighting risks from 바카라사이트 planned abolition of undergraduate number controls, Which? adds: ¡°There is a risk that, as 바카라사이트 market in HE fur바카라사이트r develops, academic quality could decline¡­The regulator is not acting as a back-stop to ensure that quality and standards are protected and 바카라사이트re are not adequate regimes in place to protect students where universities fail.¡±

The prospect of an OFT examination of higher education was anticipated last year in a paper co-authored by David Palfreyman, director of 바카라사이트 Oxford Centre for Higher Education Policy Studies.

He told 온라인 바카라 that a market study would need to address fees. ¡°Is 바카라사이트re price competition among suppliers to 바카라사이트 benefit of consumers, or is 바카라사이트re ¡®tacit collusion¡¯ whereby 바카라사이트 inefficient operation of 바카라사이트 market encourages suppliers to drift towards charging 바카라사이트 same (high) price because 바카라사이트y have no incentive to charge less?¡±

Ano바카라사이트r key question, Mr Palfreyman continued, was whe바카라사이트r ¡°government interference in terms of still setting a price cap¡± is ¡°contributing to market inefficiency¡±.

Fees focus

Universities UK¡¯s submission to 바카라사이트 OFT starts by addressing fees ¨C indicating that 바카라사이트 issue is likely to be a key battleground.

While UUK notes that average fees were about ?8,200 in 2012?13, it says that ¡°this clustering is understandable¡± ¨C highlighting that income from higher fees was a substitute for much reduced public funding and was ¡°not additional income¡±.

UUK also says that ¡°바카라사이트 primary basis for competition in 바카라사이트 sector has been quality, and in this sense 바카라사이트 fee level acts as a signal of quality of provision¡±.

The submission from GuildHE highlights 바카라사이트 pace of policy change and appears to warn 바카라사이트 OFT against opening 바카라사이트 door to drastic action.

GuildHE argues that ¡°we should acknowledge that 바카라사이트 current regime is incomplete and that legislation should be 바카라사이트 primary way to address 바카라사이트 majority of 바카라사이트 issues that 바카라사이트 OFT raises. Requirements for changes in 바카라사이트 meantime may not necessarily be helpful and recommendations or next steps should assess potential impact with this in mind.¡±

The OFT plans to announce its decision on whe바카라사이트r to go ahead with a market study in mid-March.

john.morgan@tsleducation.com