Bloomberg has an article on tuition hikes at Princeton and Harvard University. The article mentions British economist Robert Giffen who observed that demand can rise for products despite the increase of prices. This would indicate that Princeton and Harvard educations are actually a Giffen good. One point that is not made by the article is the enormous amount of financial aid provided to students who attend Princeton and Harvard. The actual costs to attend these schools are fair less in many cases than attendence costs at lower ranked schools.
To read the Bloomberg article, please click here: