Knowledge economics and the demand for higher education

Abstract

ObjectivesTo demonstrate that the changes in demand for higher education in Poland are partially caused due to the changes in consumer preferences. To examine the relationship between the supply-demand for higher education and massive open online courses. To present a novel approach to understanding the nature of the knowledge market and to demonstrate, that knowledge is misleadingly called to be non-rival and non-excludable.Material and methodsThe study employs the supply-demand model for the examination of the declined demand for higher education in Poland. It is a conceptualized approach that examines the possibility of new determinants behind the fore-mentioned trend.ResultsThe appearance of a cheap and highly accessible form of knowledge acquisition, the massive open online courses, should have impact on the supply-demand quality of the knowledge produced and consumed. The results suggest, that the appearance of a cheaper substitute to scientific knowledge leads to a shift in consumers' preferences.ConclusionsA decline in the enrollment rates in Poland and other high-income countries have taken place due to demographic shifts but possibly also to other factors such as the appearance of a cheaper substitute to knowledge offered by the Academia. This substitution effect is driven by technological advancements and cultural shifts towards free and open-source knowledge production. The knowledge market is described as volatile and characterized by imperfect competition. Technological advancements have led to an oversupply of knowledge, causing prices to decrease and demand to increase. The market for knowledge is transitioning from an oligopoly with high barriers to entry to a more cooperative and competitive environment (coopetition), where various forms of knowledge production coexist and interact.