Just take one paragraph from the guardian today which tellingly says:
The number of universities declaring that they wish to charge students the highest amount from next year has caught ministers by surprise, with the majority of institutions planning to charge more than £7,500 a year.
Now, I clearly remember government representatives on television stating that there would be a wide range in terms of fees charged by institutions and that students would be able to then make a choice from this range. Let me just say that the commodification of education is not something I condone at all, in fact it is something I vigourously oppose, but also worryingly it seems that if ministers have got it this wrong on what is comparitively a rather simple market to analyse then what does this say about the basis of policy in other areas such as around social care a much more complex entity.
And the reason why universities are charging high fees... It's because they know demand will still be there even if they charge students extortionate rates. Why? Because university still represents chasing the dream to most young people. It is still seen as virtually the only the route to a career, home-ownership and the middle class. Universities know, even if ministers don't that with few alternatives, people will be prepared to pay for this dream.