Abstract for:Long-Term Economic Viability of Tuition-Based Universities

Important trends in higher education, such as escalating tuition, can be understood if we view and study universities as complex systems that provide educational services. We build a system dynamics model that represents a typical tuition-based university in the US. It takes into account complex interrelationships between faculty, physical plant, tuition revenue, financials, reputation and service outcomes. We use the model to analyze the strategic behavior and resulting dynamics of a university in the context of rapid and accelerating transformation caused by market forces.