Revenue Optimization in Higher Education under Price Dependent Demand: A Scholarship Allocation and Tuition Pricing Model

Serdar Celik

doi:10.67334/cds31202642

Authors

Serdar Celik Department of Data Science and Analytics, OSTİM Technical University, Ankara, Türkiye Author https://orcid.org/0000-0003-4530-9055

DOI:

https://doi.org/10.67334/cds31202642

Keywords:

Enrollment Management, Scholarship Allocation, Revenue Optimization, Tuition Pricing, Mixed-Integer Programming

Abstract

Higher education institutions operate in increasingly competitive environments where student demand and institutional revenue are strongly influenced by scholarship policies and tuition fees. Under price-dependent demand, this study proposes an optimization framework for revenue management in colleges based on the optimal allocation of scholarship categories across multiple academic programs. Demand is modeled using piecewise-linear demand functions derived from observed price–demand data. The resulting model integrates capacity constraints, institutional scholarship policies, and demand elasticity within a mixed-integer optimization framework. Computational experiments using data from multiple academic programs demonstrate how tuition levels and scholarship allocation interact with demand elasticity to determine optimal enrollment and revenue outcomes. The proposed framework provides decision support for college administrators seeking to balance financial sustainability with student access objectives.

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