Acta academica karviniensia 2015, 15(3):55-68 | DOI: 10.25142/aak.2015.031

THE MODELING OF OPTIMAL LEVEL OF ENTRANCE FEE FOR CZECH PUBLIC UNIVERSITIES

Jiří Mazurek

Slezská univerzita, Obchodně podnikatelská fakulta, Univerzitní nám. 1934/3 , 733 40 Karviná, Email:mazurek@opf.slu.cz

Public universities in the Czech Republic suffer from insufficient funding for many years. One possibility for an increased funding of Czech public universities is an introduction of a low administrative fee called enrollment fee for each semester of a study. The aim of this article is to show how to find the optimal level of the enrollment fee for a given university so the total revenue of a university for enrolling students is maximal. This is done via mathematical model encompassing parameters such as maximal enrollment fee, sensitivity of enrolling students to the level of the enrollment fee, the number of enrolling students, etc. By improperly adjusted enrollment fee a university can lose millions or tens of millions crowns per year. Thus, the determination of the optimal level of the enrollment fee has high practical value, as it enables a university to maximize its combined revenue from the enrollment fee and the number of enrolling students.

Keywords: Czech Republic, enrollment fee, mathematical modeling, optimization, total revenue, university

JEL classification: C61, I22

Received: August 14, 2015; Accepted: December 15, 2015; Published: September 30, 2015  Show citation