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Why do most private colleges price and discount this way? Most colleges believe that the public relates the sticker price with the quality of the institution and that the higher the price the higher the perceived quality. Second, many colleges believe that students and their families like getting scholarships. Families resonate to scholarships and take it as an indication that the institution wants their child. Third, the larger the difference between the sticker price and the net price the more colleges can charge different net prices to different students; this gives the schools more opportunity to discriminate in their pricing in favor of students who are most desirable to the college. Fourth, many schools are unable to get the enrollment that they need to fill up their classrooms at their sticker price because students and their families are either unable or unwilling to pay the price and thus they must discount the price to get the enrollment that they need for financial equilibrium.