The Australian Government is changing the way it determines what fees will be charged for each University course. They are doing this because they want to encourage people to study some courses where there are good job prospects and discourage people from studying other courses where there aren’t going to be as many jobs. In other words, they want to optimize prices to try and influence demand. The end of the day, that is what Dynamic Pricing is all about. So lets have a look at some examples of what’s going to happen.
The Government would like to see more people studying Science. They would like to see more people studying Mathematics. They would like to see more people that are experts in Computing. And as a result, the fees for those types of Degrees are all going to come down. But there are other courses where we are going to see the fees going up. So for example, somebody in the Government must think that we have too many lawyers in Australia.
Now can you believe that anybody would actually form that opinion that we have too many lawyers? Well, sure enough, that’s what the Government is saying because they are putting the fees for studying Law up.
And if you want to study Humanities, well, I am very sorry to say your fees are going to double. And this has sparked a bit of a debate as to whether people should be studying Humanities for other reasons apart from just getting jobs. But that is only out of the scope of what we consider here at the Price Wizard. Our focus is on Pricing and the reason why Pricing decisions are made.
So the Government has put together quite a long list of all the different Degrees and which ones are going to cost more and which ones are going to cost less. I tried to find on the list ‘Dynamic Pricing’ to see what would be happening to the fees for studying that subject, and I couldn’t find it on the list.
So the conclusion that I drew was the Government thinks that studying Dynamic Pricing must be priceless!
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