Illini Bucks

Introducing Illini bucks to campus would certainly create an interesting array of opportunities for students to illustrate which services, activities, events or goods they preference. If I understand correctly, the hypothetical situation introduced in the prompt gives each student an equal number of “Illini bucks” at the bringing of the semester. Before spending this campus currency, students would already have an understanding of how much each illini buck can purchase on campus. For example, maybe students can use these bucks to get in the front of the line for access to sporting events, concerts, registering for classes, interviews, library tables, gym lockers etc. It seems as though the potential uses are endless.

There are many aspects of everyday campus life that I wish I could simply, “cut in line”, some of which I mentioned above. We learn in economics that each person has his or her own set of preferences, which makes up an indifference curve and influences their spending habits. All things being equal, and there being no seniority for picking classes based on credit hours, I would choose to spend my illini bucks on picking classes before others. I personally think tuition is meant to purchase education and using this imaginary currency, paid for by my tuition, to increase my learning experience would provide me with the most utility. It is known, that many of the best, interesting, even “easiest” classes fill up first during registration. Those who have the most credit hours in their respective class have the opportunity to pick courses that will, in theory, give them the best educational advantage. There has been many instances where I would (not literally) wish to pay someone just to save me a spot in a highly regarded course.  We mentioned in class that there are many ways other schools across the nation allow students to choose courses; I think introducing illini bucks would greatly change that process here on campus.

However, not everyone shares the same preferences. I know many friends who would rather choose to spend their Illini bucks on getting first picks for basketball season tickets, or the best parking spots on campus.  I cannot say what percentage of students would apply their currency to educational vs recreational benefits, though it would be an interesting study. I have to imagine that the majority of students would choose to use the currency on registration, tutoring session, job fairs, etc. After all, this is the reason why we go to school.  Pricing all these options out would be an interesting process.

Quite frankly, I think it would be impossible to set an effective fixed pricing scheme for illini buck purchases. I don’t see an efficient situation where the campus government could accurately determine the preferences of the entire campus and as a result set prices on a supply/demand basis. If prices are set too low, disproportionate to demand, students will end up still entering a first come first serve basis system as the services in high demand will have long lines with people wanting to spend their bucks first. If prices are too high, then students, I assume, will end up spending the majority of their bucks on educational related services, while all other services continue to operate on a first come first service basis as people deplete their funds.

I think this fixed price system would result in a secondary market for educational and recreational related services. As people change preferences throughout the semester I would expect prices to fluctuate and people willing to either exchange real money, or illini bucks for services in demand.