Exploring heterogeneity in willingness to pay for the attributes of higher education institutions

We provide an in-depth analysis of the extent and nature of heterogeneity in willingness-to-pay (WTP) for the attributes of higher education institutions (HEIs). Using data from Ireland, mixed logit and generalized multinomial logit models are used to examine heterogeneity in WTP by region, academic ability, and socio-economic status. The analysis shows that regional variation in WTP for the attributes of HEIs is substantial, which suggests that preferences may be shaped by the characteristics of the region in which a student lives. Heterogeneity in WTP is also found based on a student's academic ability, with higher-ability students willing to pay considerably more for a higher-quality institution compared to lower-ability students. We also find that students in the highest socio-economic group are willing to pay more for all attributes.