Why is college in America so expensive?

The more i studied America’s baffling higher-education system, the more it reminded me of health care. In both spaces, Americans pay twice as much as people in other developed countries—and get very uneven results. The U.S. spends nearly $10,000 a person on health care each year (25 percent more than Switzerland, the next biggest spender), according to the OECD’s 2017 Health at a Glance report, but our life expectancy is now almost two years below the average for the developed world.

“I used to joke that I could just take all my papers and statistical programs and globally replace hospitals with schools, doctors with teachers and patients with students,” says Dartmouth College’s Douglas Staiger, one of the few U.S. economists who studies both education and health care.

Both systems are more market driven than in just about any other country, which makes them more innovative—but also less coherent and more exploitive. Hospitals and colleges charge different prices to different people, rendering both systems bewilderingly complex, Staiger notes. It is very hard for regular people to make informed decisions about either, and yet few decisions could be more important.