Introduction
In characterizing a recent college admissions fraud case brought by the US Attorney for the District of Massachusetts, Judge Douglas Woodlock bluntly labeled the fraud “a sneaky crime of conspicuous consumption.”Footnote 1 In this chapter, I explore the legal implications of consuming elite higher education as a luxury good. Like luxury goods companies, elite universities are regarded as owners of luxury brands under trademark law. Companies such as Louis Vuitton, Ferrari, and Hermès own brands that enjoy a high level of exclusivity and attract conspicuous consumption. So do elite universities. I propose that Harvard, Stanford, and Yale can be viewed as analogous to Louis Vuitton, Ferrari, and Hermès.
This “luxurification” of higher education, however, perpetuates class division and violates the right to education by favoring students from families who can pay the tuition. In this chapter, I consider how luxury brands prosper through exclusivity and conspicuous consumption. I then explore the extent to which elite universities can be compared to luxury brands and why their institutional names and logos should, primarily from a trademark protection perspective, be regarded as hyper luxury brands. Finally, I consider the legal and social implications of the luxurification of higher education.
I. The Making of a Luxury Brand
Ranging in price from $40,000 to $500,000 and with a waiting list of up to six years, the Hermès Birkin is the most coveted of handbags.Footnote 2 Why are luxury items such as the Hermès Birkin so appealing? Consumers are drawn to luxury goods like Birkin bags due to their exclusivity.Footnote 3 This aura of exclusivity entails superior quality, enhanced creativity, and the steep price of goods or services marketed by these luxury brands.
Quality. Luxury brands are synonymous with exceptional materials, craftsmanship, and service. High-quality leather, fabrics, and rare stones are sourced by luxury companies from carefully selected supply chains,Footnote 4 and rigorous screening processes are used to maintain premium product craftsmanship.Footnote 5 Luxury companies are also recognized for offering high-quality in-store and post-sale services dedicated to their customers’ needs.Footnote 6
Creativity. Luxury brands also signify the high level of creativity that is embedded in their goods and services. Luxury fashion companies vigorously support innovation in product design, constantly redefining fashion trends and luxury lifestyles.Footnote 7 Legendary designers, such as Giorgio Armani, Coco Chanel, Valentino Garavani, Gianni Versace, and Yves Saint-Laurent, created and branded their own luxury business empires with highly creative designs.Footnote 8 Luxury conglomerates such as Compagnie Financière Richemont SA, Kering SA, and LVMH Moët Hennessy Louis Vuitton rely on gifted designers and artists.
Price. Luxury companies maintain the exclusivity of their brands through pricing strategies, with high prices normally commensurate with the quality and creativity invested in their products or services.Footnote 9 Harry Winston and Van Cleef & Arpels sell their jewelry at a much higher price than other brands because of the high quality of their diamonds and creative designs, craftsmanship, and services.Footnote 10 The same applies to other luxury brands. Normally, the better the materials, craftsmanship, and services a luxury company provides and the more it invests in creativity, the more it charges for its products.
As price is an important indicator of the level of exclusivity, luxury brands apply marketing strategies like offering limited editions and controlling sales channels.Footnote 11 To safeguard these exclusivity-oriented marketing strategies, luxury companies have taken legal action against retailers who sell their products too cheaply or without a license.Footnote 12
A. Conspicuous Consumption
Apart from quality and creativity, what else does the high price of a Birkin bag signal? And why are consumers willing to buy this extremely expensive item? The high price is a public statement of the Birkin bag as a status symbol,Footnote 13 and many consumers purchase these bags for this reason. The exclusivity of luxury brands like the Hermès Birkin is inextricably linked with their signifying function vis-à-vis the conspicuous consumption of luxury goods or services.Footnote 14
Conspicuous consumption refers to people’s willingness to pay a much higher price for a functionally equivalent good for the purpose of the public display of that good as a status symbol. A person’s acquisition of wealth does not necessarily level up his or her social status. Instead, this wealth must be used to publicly display certain indicators. According to Veblen, “In order to gain and to hold the esteem of men, wealth must be put in evidence, for esteem is awarded only on evidence.”Footnote 15 One’s consumption of the bare necessaries of life does not produce such evidence, but lavish spending on luxury goods and services does. Luxury goods in Veblen’s time, such as precious metals and gems,Footnote 16 expensive “food, drink, narcotics,”Footnote 17 hand-made silver spoons,Footnote 18 and fashionable dress,Footnote 19 were costly and sold to a relatively small number of people because they were naturally scarce and crafted in a sophisticated manner. “Since the consumption of these more excellent goods is an evidence of wealth,” Veblen observes, “it becomes honorific; and conversely, the failure to consume in due quantity and quality becomes a mark of inferiority and demerit.”Footnote 20
Conspicuous consumption leads to the so-called Veblen effect, through which the demand for luxury goods increases as their price increases.Footnote 21 Subject to this effect, a luxury good or service has a two-segment pricing scheme: the real price and conspicuous price. The former stands for the normal market price that ordinary consumers pay for the good.Footnote 22 It covers the costs for design, production, and circulation. The conspicuous price refers to the extra costs the seller charges for the status-signifying function of its luxury goods. People who consume conspicuously are willing to buy luxury goods at higher conspicuous prices. This is because they care much more about the status-signifying function of conspicuous prices than other consumers, who are only willing to pay real prices.Footnote 23 The higher the conspicuous prices of luxury goods, the more elite consumers are willing to buy these goods as signifiers of status.Footnote 24
For a long time, the conspicuous consumption phenomenon applied to luxury goods without brand names attached. However, since the 1980s, the luxury goods sector has radically transformed its elites-oriented business model through branding. First, as more people are able to afford luxury goods, sales volume increases. Marketing luxury goods through brand names is cost-effective and impactful.Footnote 25 This trend has intensified since the formation of luxury brand conglomerates, making each luxury company more profit-driven.Footnote 26
Second, extensive advertising of luxury goods through television and social media increasingly relies upon brand names. Many luxury good advertisements contain a trademark or a combination of trademarks that represents the brand names of the good. These trademarks indicate the identity of product manufacturers and service providers and signify the quality, creativity, and price of their products or services. Luxury companies also routinely incorporate celebrities into their advertisements to show that their products or services are so distinctive and elegant that they ought to be enjoyed only by people with elite lifestyles.Footnote 27
As Jean Baudrillard famously observed, “[in order to] become an object of consumption, the object must become a sign.”Footnote 28 Mikimoto sells jewelry made of cultured pearls, each of which is worth a mere 10 percent of a natural pearl.Footnote 29 The value resides in the Mikimoto trademark; the sign, represented by its conspicuous price. With increased prevalence of trademarks, consumers increasingly associate these symbols not only with luxury goods and services but also with prestige and social status.Footnote 30
Trademark law has also come to recognize trademarks as symbols of prestige and social status. Courts have held that the Christian Dior mark stands for “the allure and prestigious image [with] an aura of luxury,”Footnote 31 the Ferrari mark “reputation for rarity and quality,”Footnote 32 Hermès for “scarcity” and “status,”Footnote 33 the Lexus mark for “exclusive luxury experience,”Footnote 34 Gucci for “luxury status,”Footnote 35 and the Rolex and Vacheron & Constantin-Le Coultre marks for “prestige.”Footnote 36 Given that luxury brands signify their users’ social positions, courts have further recognized their function in relation to conspicuous consumption. For instance, based upon the judicial recognition of Louis Vuitton’s “luxury status” and “image of exclusivity and refinery,”Footnote 37 a Louis Vuitton product is “something wealthy women may handle with reverent care and display to communicate a certain status.”Footnote 38
In a similar vein, attorneys who have argued cases for luxury brands have emphasized in their court filings that these brands function as high status signifiers. For example, attorneys asserted that Lexus “is a very prestigious luxury brand and it is an indication of an exclusive luxury experience,”Footnote 39 and is also well known for its “power, attraction, reputation and prestige.”Footnote 40
II. Elite Universities as Luxury Brands
In the acclaimed The Great Gatsby, protagonist Jay Gatsby pretends to be an Oxford University graduate in order to increase his reputation and his chances of winning over the woman he loves.Footnote 41 How can a university’s name carry so much allure and prestige? What is the relevance of this amid the recent college admissions scandals?
In this section, I argue that elite university names also represent exclusivity and serve conspicuous consumption and, thus, such names should be regarded as luxury brands. Moreover, mainly from the trademark protection perspective, I further contend that elite universities should be regarded as owners of hyper luxury brands.
Elite universities achieve exclusivity through bolstering their quality of education, creativity of research, competitiveness of the admissions process, and rates of tuition.
Quality. With large endowment funds plus high tuition fees,Footnote 42 elite universities are financially capable of offering excellent software for teaching and learning. These universities top the relevant educational rankings and have the largest endowments. Thirteen have individual endowments valued at $10 billion or more.Footnote 43 Elite universities endeavor to recruit talented scholars through rigorous hiring processes and further provide training programs to improve the quality of teaching. They also dedicate resources to innovating curricula that will equip students with cutting-edge knowledge for postgraduate and professional pursuits. Moreover, elite universities generously capitalize on their endowments, creating an excellent peer learning atmosphere by enrolling high-caliber students. Meanwhile, elite universities are well known for their excellent hardware, such as libraries, classrooms, and dormitories. For example, Harvard University has the largest university library in the US and the largest private library in the world.Footnote 44
Creativity. With vibrant academic traditions, culture, and capabilities, elite universities excel in research performance, producing impactful findings. The top positions in ranking lists are mostly occupied by elite universities. These universities have a vital role to play in fostering innovation and inventing new technologies.Footnote 45 Stanford, the Massachusetts Institute of Technology (MIT), and Harvard have been ranked as the top three most innovative universities in the world for five straight years since 2015,Footnote 46 and all ten universities with the highest number of Nobel Prize winners between 2000 and 2017 are elite universities.Footnote 47
Competitiveness. The highly competitive admissions process is another factor contributing to the exclusivity of elite universities. Every year, the number of applications to elite universities far exceeds the number of students they can admit. It is estimated that only 6.4 percent of 368,806 applicants were admitted by the top ten US universities as ranked by the U.S. News & World Report for the fall 2019 entering class.Footnote 48 There has been a tendency for elite universities to raise admissions standards, making enrollment even more competitive.
The acceptance rates of Ivy League universities and other top colleges have dropped to record lows in recent years. Harvard’s acceptance rate fell from 4.6 percent in 2018 to 4.5 percent in 2019, resulting in only 1,950 students accepted out of 43,330 applicants.Footnote 49 Duke University cut its acceptance rate from 8.6 percent in 2018 to 7.4 percent in 2019, the biggest drop among the top ten US universities.Footnote 50 Other elite colleges also operate with extremely low acceptance rates, including Columbia (5.1 percent), Yale (5.9 percent), the University of Chicago (5.9 percent), MIT (6.6 percent), and the University of Pennsylvania (7.4 percent).Footnote 51
Price. Exceptionally high tuition is another force driving the exclusivity of elite university education. Price reinforces the luxury aura of such educational services as it creates a financial barrier to entry, separating those who can afford education as a luxury good from those who cannot. In fact, if elite universities charged lower tuition, their quality and status could be questioned.Footnote 52
Current tuition and fees for full-time undergraduate students at all of the top ten US universities exceed $50,000 per year, while the average cost for in-state students at public universities is $10,440.Footnote 53 Columbia University charges the highest tuition among the top ten at $64,380.Footnote 54 Over the last forty years, the tuition and fees of US elite universities have risen faster than US inflation rates and household income, deterring middle- and low-income students from applying.Footnote 55
The high costs of elite university education are justified not only by the quality of education, creative output, and competitive admissions process, but also by access to highly compensated jobs upon graduation. Most Wall Street bankers are recruited from the Ivy League and other elite universities such as MIT and Stanford.Footnote 56 Four-fifths of US law firm partners earning $5 million in profits per partner are graduates of the top five law schools.Footnote 57 A recent survey of Harvard, Princeton, and Yale alumni shows that three-quarters of them live in zip codes ranking in the top 20 percent on an index of income, half in zip codes in the top 5 percent, and a quarter live in zip codes in the top 1 percent.Footnote 58
Duke is an elite university located in Durham, North Carolina, charging undergraduate students approximately $60,000 in tuition and fees.Footnote 59 Located only about ten miles away, the University of North Carolina at Chapel Hill (UNC) is a public university, charging in-state undergraduate students approximately $9,000 in tuition and fees.Footnote 60 However, many students and their parents may still choose Duke over UNC. This is because they may attach more importance to Duke’s exclusivity accrued from its quality of education, creativity, and admissions process. The acquisition of prestige and social status through conspicuous consumption of education is another reason why families might make such a decision.Footnote 61 Elite universities facilitate conspicuous consumption of education in the following two ways.
First, elite universities’ efforts to boost their exclusivity produce an inevitable corollary to the Veblen effect. As discussed in Section I, above, the Veblen effect reverses the classic relationship between price and demand by increasing the demand for luxury goods despite (or as a result of) their rise in price. This effect is observable in elite higher education.Footnote 62 Each year, more students apply to increasingly expensive elite colleges. Research shows that after adjusting for inflation, tuition and fees charged by private colleges rose by 140 percent between 1985 and 2016.Footnote 63 The Ivy League and other top colleges like Duke, MIT, and Stanford increased tuition and fees roughly 3–4 percent every year from 2013 to 2018.Footnote 64 Nonetheless, every year these elite universities have received more applications, driving acceptance rates lower.Footnote 65 In fact, rising tuition and fees in elite universities boost applications.Footnote 66 For instance, it was found that for elite colleges, an additional $1,000 increase in tuition and fees contributed to a 3.6-point increase in SAT scores, a 1.2 percent reduction in acceptance rates, and a 0.5 percent increase in the number of admitted students who enrolled.Footnote 67
Elite universities treat low acceptance rates as a means of enhancing prestige.Footnote 68 They have an incentive to reject more applicants because lowering acceptance rates could improve their university ranking performance, which in turn encourages more students to apply.Footnote 69 Students and their parents become more anxious when they realize that gaining admission to an elite college is becoming more difficult, and this pushes them to apply to more schools to maximize their chances of acceptance.Footnote 70 The globalization of higher education is another factor driving down acceptance rates. The past two decades have witnessed a rapidly increasing number of international applicants who can easily afford the high tuition and fees at elite universities.Footnote 71
Second, the Veblen effect shows that the impetus for conspicuous consumption of elite education is the prestige and social status conferred by these elite universities. Given their exclusivity, elite universities confer prestige on their students and graduates through their admissions and educational programs.Footnote 72 Limited numbers and restrictive entrance requirements mean that only a very small portion of students can be admitted and complete their studies at these universities. The amount of status elite universities can confer on students and graduates depends on the status they themselves enjoy, measured to a certain extent by rankings. The higher a university ranks, the more prestige its students and graduates enjoy. The status of an alumnus also has an impact on the status of his or her alma mater. Elite universities tout their networks of distinguished alumni, such as leading government officials and accomplished entrepreneurs, to raise their national and international profiles.
The Veblen effect explains why some parents are keen to foot the bill for their children’s expensive, elite education. While they care about the academic benefits of elite universities,Footnote 73 they also value the prestige and social status that they impart. Parents may treat the payment of high tuition and fees as an opportunity to show off their wealth and enjoy the prestige and social status that are associated with these universities.Footnote 74 From this perspective, the high tuition and fees become the conspicuous price of the status-signifying function of elite higher education.Footnote 75 Moreover, many parents see their children’s achievements as a reflection and extension of their own.Footnote 76
As revealed earlier, conspicuous consumption of luxury goods has evolved into a focus on brands that signify exclusivity and prestige. So has conspicuous consumption of elite education. Elite universities have increasingly relied upon their institutional names and logos as brands, and parents and students increasingly care about these brands.
Elite universities adopt luxury branding strategies to strengthen the exclusivity and prestige of their educational services. Given their long history, incumbent universities such as those in the Ivy League have already gained the status of luxury educational brands.Footnote 77 Their management teams endeavour to maintain and improve their top rankings by strengthening their exclusivity and soliciting donations for further institutional development.Footnote 78
On the other hand, some universities adopt luxury branding strategies in order to rebrand themselves as elite. For example, several universities have implemented the so-called Absolut Rolex Plan to boost the quality and reputation of their educational services.Footnote 79 Quoting from George Washington University’s former president Stephen Trachtenberg, who initiated the plan:
“College is like vodka. Vodka is by definition a flavorless beverage. It all tastes the same. But people will spend $30 for a bottle of Absolut vodka because of the brand. A Timex watch costs $20, a Rolex $10,000. They both tell the same time.”Footnote 80
This Absolut Rolex Plan paid offFootnote 81 for George Washington University, which has since significantly increased the exclusivity and reputation of its educational services, as have other universities that implemented this luxury branding strategy.Footnote 82
Wealthy parents are often consumers of luxury educational brands.Footnote 83 For example, affluent families in China are increasingly sending their children to US universities. Soon after they become wealthy, they regard university degrees, especially those conferred by elite universities, as status symbols for themselves and their children.Footnote 84 These status symbols are built around the high cost, scarcity of seats, high proportion of the best and brightest students, first-class campuses and facilities, high-quality education, and better graduate career prospects. Increasingly, affluent families in China are sending their children to US universities.Footnote 85 In 2014–15 alone, more than 300,000 Chinese students attended university in the United States.Footnote 86 These families sometimes spend heavily on admissions counselling, private tutoring, and extracurricular activities for their children, and even make donations to universities in order to increase the chances of their childrens’ admission.Footnote 87
The tremendous popularity of university rankings evinces the effectiveness of elite universities’ luxury branding strategies. Oftentimes, university rankings simply highlight elite universities’ institutional names and/or logos encapsulating many university achievements. Therefore, these names and logos are perceived as brands symbolizing exclusivity, prestige, and social status. The higher a university is ranked, the more exclusive and prestigious its name and logo are in the minds of students and parents.Footnote 88
Guided by the symbolic ramifications of ranked names and logos, students and parents rely increasingly upon university rankings to make their selections.Footnote 89 For instance, Monks and Ehrenberg’s research found that a university’s drop in rankings led to a greater acceptance rate, a smaller percentage of admitted students, and an entering class of lower academic quality.Footnote 90 Among prospective international students, 32 percent have been found to consider ranking an important factor when choosing their university.Footnote 91 Chinese students cited the U.S. News & World Report rankings as the most influential factor.Footnote 92
III. Elite Universities as Hyper Luxury Brands
I have demonstrated that, like a luxury good, the exclusivity of elite higher education makes it a target for conspicuous consumption. It follows, then, that elite university names and logos can be regarded as luxury brands in the educational services marketplace. While elite universities and luxury companies both apply luxury branding strategies, the names and logos of universities are more exclusive and prestigious. In this section, I consider from a trademark protection perspective why elite university names and logos should be regarded as hyper luxury brands.
Luxury companies rely heavily on trademark law to protect the exclusivity and prestige of their brands, which in turn drive conspicuous consumption. Trademark law confers upon business owners, such as luxury companies, an exclusive right to a trademark that is capable of indicating the source of a product or service in the marketplace.Footnote 93 If trademark protection were to be suspended or eliminated in a country or across the globe, the pervasiveness of counterfeit goods or services would cause a crisis of survival for the entire luxury industry.
On the one hand, the absence of trademark protection would embolden counterfeiters to flood the market with fake goods without any legal liability, which would significantly impair the exclusiveness and prestige of luxury brands.Footnote 94 On the other hand, other forms of intellectual property such as copyright and design patents have proven to be ineffective in protecting luxury companies in warding off free-riding activities.Footnote 95 Therefore, courts have attached great importance to trademark law’s function in weeding out counterfeits by holding that it is legal to sell knockoffs only if they do not bear a counterfeit trademark.Footnote 96
Trademark law protects luxury brands as status symbols in four primary ways. First, it guards against the use of marks that are confusingly similar, which helps luxury companies preserve the exclusivity of their trademarks. Normally, courts apply a multi-factor testFootnote 97 to decide whether the party sued by the luxury company has used its mark in such a way as to mislead consumers into believing that the goods in question were manufactured by the luxury company. By prohibiting the use of confusingly similar marks, the test’s “competitive proximity” and “bridging the gap” factors also entitle luxury companies to control not only their existing market channelsFootnote 98 but also the potential market sectors they legitimately intend to expand into.Footnote 99 The more famous and distinctive a luxury mark is, the stronger the legal protection the anti-confusion test would afford.Footnote 100
Second, the post-sale confusion doctrine prevents knockoffs from causing harm to luxury brands’ quality reputation and prestige.Footnote 101 In Rolex Watch U.S.A., Inc. v. CannerFootnote 102 and Ferrari S.P.A. v. Roberts,Footnote 103 the courts ruled that the public circulation of knockoff watches that bore the “Rolex” trademark and cars that looked very similar to Ferrari’s had led consumers to question the quality, reputation and prestige of Rolex and Ferrari.Footnote 104
Third, the anti-dilution doctrine guards against blurring the distinctiveness of a famous trademark and tarnishing its reputation. The anti-blurring doctrineFootnote 105 “functions to prevent the prestigious images of luxury brands from being diluted into brands accessible to the mass public, an effect that would gradually whittle away the prestige of luxury brands.”Footnote 106 Tarnishment may occur when a trademark is linked to “products of shoddy quality, or is portrayed in an unwholesome or unsavory context.”Footnote 107 In this context, the harm caused by dilutive use is “that the public will associate the lack of quality or lack of prestige in the defendant’s goods with the plaintiff’s unrelated goods.”Footnote 108
Fourth, trademark law has widened the scope of the registrability of marks, enabling non-traditional luxury marks to receive legal protection against confusing and dilutive uses. These trademarks differ from those that are traditionally registered as word or logo marks. Famous examples are single-color marks such as the Tiffany blueFootnote 109 and Christian Louboutin red-sole marks,Footnote 110 and motion marks such as the vertical opening mechanism of a Lamborghini door.Footnote 111
There is a key difference between brands owned by elite universities and those of luxury companies. Elite universities can be elevated to the status of hyper luxury brands,Footnote 112 due to their extremely low admission rates, enrolling just 5 percent of applicants every year.Footnote 113 Luxury companies generally open their stores and services to the general public, selling goods or services to anyone who can afford them. Elite education goes beyond the purchase of luxury goods because money is not generally enough to gain admission to an elite university.
Another major factor determining the hyper luxury brand status of elite universities is their very limited recourse to trademark protection. For a number of reasons, elite universities do not need to rely on strong trademark protection in the same way that luxury companies do.
First, elite university brands rely very little on anti-confusion protection.Footnote 114 For instance, Hotel Stanford is a three-star hotel located near Pennsylvania Station in New York City.Footnote 115 It is highly unlikely that anyone would believe Stanford University has any affiliation with it because, according to the test set out in Polaroid Corp. v. Polaroid Elecs. Corp.Footnote 116 for assessing the likelihood of confusion, there is no “competitive proximity” between a hotel and a university, nor would Stanford extend its business activities to hotel services. However, if a secondary school were to name itself Stanford High School, its position in the educational domain suggests an affiliation with the university that might cause confusion among the target consumers.Footnote 117 Yet any journalist or curious parent could quickly and easily defeat the validity of this suggestion by fact-checking with Stanford University. Therefore, few schools would attempt such a false affiliation.
Second, elite university brands are impervious to post-sale confusion. Trademark law prevents circulation of counterfeit goods that damage the reputation and prestige of luxury brands.Footnote 118 However, wearing a poor-quality counterfeit Harvard-branded hat, for example, does not necessarily harm Harvard’s brand reputation or prestige because they are related to the quality of educational services, not hats.Footnote 119
Third, elite university brands can defeat dilutive uses largely because there is moral backlash against such uses. Suppose a company registered the “Princeton” mark for its toilet plungers. This mark, however, would blur the distinctiveness of the Princeton mark, because it would now be associated with products other than educational services.Footnote 120 Moreover, the reputation of the mark might be tarnished as it is “portrayed in an unwholesome or unsavory context.”Footnote 121 However, universities are highly regarded by the public. Therefore, the public would treat such dilutive uses of educational marks as an offense to the moral mission of a university and it would be unlikely to be attracted to any toilet plungers bearing the Princeton mark.Footnote 122 For these reasons, it is unlikely that a manufacturer would make such dilutive use of an educational mark.
Fourth, due to the importance they attach to history and tradition, elite university brands tend to use only conventional words and logos as trademarks. Unlike luxury goods companies, they have not (yet) used or sought to protect non-traditional marks such as color, smell, and motion marks.
IV. Social Justice and the Right to Higher Education
The luxurification and conspicuous consumption of elite education are phenomena that do not only involve elite universities and wealthy families. In this section, I examine their implications for the protection of every human being’s right to higher education as a means of promoting social justice.
Since its inception within the framework of the United Nations, the right to higher education has paved the way for the enjoyment of higher-education equality: The 1948 Universal Declaration of Human RightsFootnote 123 states that “Everyone has the right to education” and “higher education shall be equally accessible to all on the basis of merit.”Footnote 124 And the ICESCRFootnote 125 states that to protect the right to education, states should ensure “higher education shall be made equally accessible to all, on the basis of capacity.”Footnote 126 The shift from “merit” to “capacity” broadens the coverage of the right to education to benefit students from disadvantaged backgrounds,Footnote 127 who may not have benefited from a strong primary and secondary education but nonetheless have the capacity for further study. The scope of the right to education is not clearly defined in the ICESCR because the cost of education is very high; states are only required to have higher education that is “equally accessible.”Footnote 128
Although the right to education is not a fundamental right provided for under the US Constitution,Footnote 129 US courts have attached importance to its protection as a civil right. In Brown v. Board of Education,Footnote 130 the Supreme Court relied upon “the importance of education to our democratic society” and the right to education to resoundingly invalidate racial segregation in the public school system.Footnote 131 In Grutter v. Bollinger,Footnote 132 the Supreme Court recognized the value of equality in higher education, ruling that the Equal Protection Clause of the US Constitution did not prohibit the University of Michigan Law School’s narrowly tailored use of race in its admissions decision to “further a compelling interest in obtaining the educational benefits that flow from a diverse student body.”Footnote 133 This ruling was made because access to legal education “must be inclusive of talented and qualified individuals of every race and ethnicity, so that all members of our heterogeneous society may participate in the educational institutions that provide the training and education necessary to succeed in America.”Footnote 134 Moreover, the Court stressed the importance of equal access in public school to all segments of American society, and that “Nowhere is the importance of such openness more acute than in the context of higher education.”Footnote 135 Although Grutter deals with the Fourteenth Amendment as it applies to a public school, as a state actor, Congress has established the importance of equality in private educational institutions receiving federal financial assistance in Title VI of the Civil Rights Act of 1964.Footnote 136
What does the luxurification of higher education mean for access to it? In modern societies, higher status is as important as seeking more political and economic power because people care about how they are perceived by others.Footnote 137 Against this backdrop, the luxurification of higher education reinforces how the receipt of education confers social status.Footnote 138
People attain higher status with increasing, highly differentiated levels of educational attainment. A functionalist theory of education argues that the bestowal of different statuses by reason of educational attainment is beneficial to society, as people need to occupy a variety of social positions in order for society to function well. Education can help sort people into appropriate social positions by equipping them with the job skills needed for specialized occupations. The educational system reinforces social stratification and preserves social class inequalities from one generation to the next by sorting students according to social class and transmitting class-oriented norms, values, beliefs, and behaviors.
The luxurification of higher education drives social class division and inequality in education. This is because universities are stratified, just like people in society, and differentiated by students’ social class background and academic accomplishments. Highly ranked universities tend to draw students with higher socioeconomic status, and students from more privileged backgrounds are more likely to attend high-quality, prestigious universities.Footnote 139 Receiving education at an elite university is a means of accruing, maintaining, and signaling economic power and prestige.
Such luxurification is completely at odds with equal access as the ethical basis for the right to higher education recognized by international human rights treaties, Congress, and the Supreme Court. US elite universities date back to colonial times when religious groups sponsored the college education of their clergy.Footnote 140 Later, upper-class men established colleges to nurture children of their own class.Footnote 141 Until the 1950s, elite universities and colleges reserved admission for students “fortunate enough to have been born into the right family or to have attended a particular … high school.”Footnote 142
According to the 1947 Truman Commission on Higher Education, “the social role of education in a democratic society is at once to insure equal liberty and equal opportunity to differing individuals and groups, and to enable the citizens to understand, appraise, and redirect forces, men, and events as these tend to strengthen or weaken their liberties.”Footnote 143 From an individual standpoint, higher education is linked to an important array of benefits ranging from better personal and spousal outcomes, children’s educational gains, greater longevity, and even lifelong happiness.Footnote 144 From a societal standpoint, higher education is the key to social mobility and creativity and a catalyst for free speech and democracy.Footnote 145
Elite universities have been utilizing diversity programs to admit students from different races through affirmative action and from low-income families through financial aid awards. In Fisher v. University of Texas,Footnote 146 the Supreme Court upheld the legality of race-based diversity programs provided that they can pass the strict scrutiny test.Footnote 147 Similarly, in Students for Fair Admissions v. Harvard,Footnote 148 the District Court for the District of Massachusetts upheld the legality of race-based diversity programs on the same grounds.Footnote 149
While elite universities promote equal access to higher education through affirmative action and financial aid, these schemes have had little effect on the luxurification of higher education. It is estimated that only 9 percent of freshmen attending elite universities are from families in the bottom half of the socioeconomic distribution,Footnote 150 and just 5 percent of American students at prestigious law schools come from families in the bottom half.Footnote 151 Financial aid schemes also have limited impact. A study has shown that most elite universities, including five in the Ivy League, have more students from the top 1 percent of the US national income scale than from the entire bottom 60 percent.Footnote 152 Scholars have pointed out that Americans have become accustomed to the reality that higher education comes at a phenomenal cost, requiring most middle-class families to save throughout a lifetime for their children’s education at elite universities.Footnote 153
A recent proposal to shift the responsibility solely to the public educational sector has proven too politically controversial and is thus very unlikely to be accepted nationally. In his failed bid for the 2020 presidency, Senator Bernie Sanders argued that “It is time to build on the progressive movement of the past and make public colleges and universities tuition-free in the United States – a development that will be the driver of a new era of American prosperity.”Footnote 154
Given the deep-seated problems caused by the luxurification of higher education and the ineffectiveness of federal government intervention, I propose that elite US universities should devote more of their resources to promoting equal access to higher education. One means of doing so is promoting equal access to knowledge. Intellectual properties include original expression of ideas in the form of textbooks, research papers, and literary books, and inventions with novel solutions to existing technological problems. Therefore, intellectual properties embody a rich repertoire of knowledge.Footnote 155 Moreover, the enjoyment of intellectual properties is non-rivalrous,Footnote 156 meaning that a person’s use of a work or an invention does not hamper others’ simultaneous use of the expression or technical features embodied in the work or invention. Therefore, the responsible exercise of rights over intellectual properties by IP owners has an enormous impact on the public’s access to knowledge.Footnote 157
Elite universities’ socially responsible use of intellectual properties can help promote the right to higher education through providing equal access to knowledge. First, they should take advantage of their copyrights over staff publications to participate actively in open access knowledge sharing and dissemination. Second, they should prudently exercise the fair use doctrine, a user right under copyright law, to make available the tens of millions of books housed in their libraries through an e-lending program.
Through fulfilling such responsibilities, elite universities will help bring protection of the right to higher education into a new era of social justice, so that students from all walks of life can benefit from the democratization of knowledge. The beauty of this democratization is that while at present only some students are able to physically receive their education on elite university campuses, all students (whether nationally or globally, financially well placed or challenged, and of all ethnicities and genders) might benefit from the knowledge these universities and others commit to disseminating as widely and openly as possible.
Conclusion
The conspicuous consumption of elite higher education, as this chapter has revealed, is a phenomenon that treats elite universities as owners of luxury brands. The more surprising reality is that elite universities have actually become hyper luxury brands. Due to their extremely low admission rates, elite university brands are more exclusive than most luxury brands. This luxurification of higher education, however, runs counter to the ethos of education in general and the right to education in particular. As both international human rights treaties and the US Supreme Court have emphasized, the right to education entitles everyone to equal access to higher education. The luxurification of higher education stands in the way of this equality.