A business school that sacrifices research and teaching quality to keep MBA students happy and get more tuition is not going to end up better off in the end. Indiana has a more secure source of revenue and quality: our undergraduate program. Undergraduates are much cheaper to teach than MBA students, in terms of both management attention and instructor time, and yet we turn out a high-quality education. I bet, too-- though I might be wrong--- that the non-business parts of universities ordinarily profit from skimming off business school surpluses from teaching undergraduates but let them keep the MBA tuition. [This page is http://mypage.iu.edu/~erasmuse/w/04.05.26c.htm]"You lose money on every traditional MBA," admits Tepper's Mr Dunn. "My guess is that no top MBAs cover their costs, because you need outstanding faculty to attract the students, and you need money to finance their research. You make it up out of endowment, gifts and contributions from companies."
To return to Eric Rasmusen's weblog, click http://php.indiana.edu/~erasmuse/w/0.rasmusen.htm.