Business schools themselves are good businesses · Transcript · BuffettMungerGPT

WarrenIf you cut the price of the admission of the Harvard Business School by $10,000 a year, you would have less demand in all probability than an increase in demand. I mean, it's totally counterintuitive in that respect because the cachet of the school, in that case, is not only reinforced, it almost makes it necessary that it be priced toward the top. So you can throw away the demand and supply curves that they teach you in economics 101 on something like that. Frequently I have a little fun with when I attend business schools because I ask them, you know, what the definition of a wonderful business is and we go through all this stuff. And then I say, you know, I tell them that really the best business I've seen is that, you know, is the Harvard Business School or the Stanford Business School because the more they increase the price, the more people want to get in, the more people think the product is worth. And that is a marvelous position to be in.