The mixed-good nature of higher education and the effect this has on its pricing

Higher education is a mixed good; it has a private demand and a public demand. It is demanded privately because it yields a substantial increase in salary and non-monetary benefits. These benefits are high but are offset by the disutility of attending college. Higher education has a public demand because it yields external benefits, but these are lower than has been previously assumed. Given this state of affairs, private costs should be raised and public subsidies should be lowered. This can be shown by making rough estimates of what optimal costs should be at the University of Utah.