At Harvard, the final tuition, based on an amalgamation of both monetary and social factors, is the product of what the Treasurer of the University D. Ronald Daniel calls a "dialogue" between Knowles and the corporation.

Familiar with the budgets of all the schools, the corporation guides Knowles through the process. Then, in the late spring, Daniel and his colleagues must approve Knowles's tuition value.

The corporation evaluates the numbers in the context of the inflation rate and the median family income

Were the dean and the corporation to disagree, however, Daniel says, "The buck would stop with the dean."

"Realistically after some jawboning the dean is going to be the person accountable," Daniel says. "We might register our concern or our dismay."

University officials say Knowles' decision is based in part on his evaluation of the tuition market. While they may not always admit it, all schools are watching their competition, aiming to lure prospective students with attractive tuition rates.

Elizabeth C. "Beppie" Huidekoper, Harvard's vice president for finance, says what other schools are offering does have some effect on Harvard's tuition figure.

"It would be a factor of the market, of whether we are still getting the best students," Huidekoper says.

Executive Director of Student Financial and Administrative Services at Yale Ernst D. Huff admits that Yale would want to match other Ivy League schools' tuition if they decreased dramatically.

"Certainly we would take such an announcement seriously," Huff says.

Lewis is quick to point out that tuition is not market-driven in the sense that Harvard does not charge the maximum it feels people will pay for a Harvard diploma.

"If we charged what the market would bear, I'm sure the Harvard tuition would be a great deal higher than it is!" Lewis wrote in an e-mail message.

What Goes Up...

With the cushion of a strong endowment and a successful Capital Campaign, Knowles does not currently face a budget crunch, which might require a more direct tie between tuition and per-student cost.

So now, when he sits down to determine how much the mostly static tuition will increase for a coming year, he is free to decide which outcome looks the best to potential consumers within fairly broad limits set by necessity.