The quality-inclusivity paradox: tariff governance in open universities

Purpose This paper examines tariff (tuition fee) setting in open and distance education (ODE), focusing on the fundamental tension between financial sustainability and equitable access in open universities. Design/methodology/approach The study adopts a conceptual and comparative analytical approach grounded in human capital theory, public goods economics and cost-sharing theory. The study employs a conceptual and comparative policy analysis drawing on documentary evidence from Universitas Terbuka (Indonesia), Indira Gandhi National Open University (India) and The Open University (UK). Findings The paper identifies a structural “quality–inclusivity paradox” in ODE: maintaining educational quality requires increasing financial resources, while inclusivity demands low or moderate tariffs. Effective responses include tiered pricing models, cross-subsidization strategies and data-driven tariff governance. Segmented service-level pricing emerges as a viable mechanism to balance financial sustainability with equitable access. Research limitations/implications The study is primarily conceptual and case-based. Future research should incorporate empirical institutional data to validate pricing models and measure student responsiveness to tariff changes. Practical implications ODE institutions should adopt activity-based costing, dynamic tariff-setting mechanisms and integrated financial aid systems to support equitable access while maintaining quality. Social implications Transparent and inclusive tariff governance strengthens the role of ODE as a driver of social mobility, equity and lifelong learning. Originality/value This paper introduces the “quality–inclusivity paradox” as a unifying analytical framework and reframes tariff setting as a strategic governance instrument rather than a purely financial decision.