I-What?

If you’re confused by the new RPS meal plan, you aren’t alone. The name change from “meal points” to “I-BUCKS” is only the beginning. In essence there are two options: Cream and Crimson. Cream is available only to students, Crimson to everyone else. The difference between these plans is that those on the Cream plan will receive 60 percent discounts on all purchases, while participants on the Crimson plan will receive discounts of only 25 percent. In purchasing a plan, operational costs are paid up front. The larger the plan purchased, the lower the percentage paid in operational costs.\nOut of all that complicated mess comes essentially one main point: You get more for your money if you buy a bigger plan. The plan isn’t complicated to confuse you, although it seems to have that effect. It is set up to offer students incentives to buy in certain ways, namely to pay more money up front. The plan was designed with help from IUSA Vice President Dan Sloat, among other students, and seems to be a satisfying compromise. \nHowever, the IDS Editorial Board finds the new plan potentially concerning. While the plan is good for RPS in that it doesn’t have to save up money to expand its services or make renovations, it removes the organization’s incentive to compete for student dollars – it has them already. And while this was the case with the old system, the new plan does more to remove the incentive for RPS to compete for additional student buy-ins.\nHowever, RPS Executive Director Pat Connor wants to encourage students not living in dorms, as well as faculty and staff, to use the dining services. That means he will have to offer quality services if he wants them to come back. Connor maintains that he wants students to leave the dorms happy with RPS so they buy plans later. \n“We are, in essence, there for students to see the value (of RPS services),” Connor said.\nThis is true. But it’s hard for RPS to know if students are leaving happy, and thus won’t know the immediate impact of their services upon student impressions, at least if they judge by purchases made. Connor often refers to the obligation upon RPS, once it has students’ money, to offer quality services. But one of the basic rules of economics is that people respond to incentives – and RPS, with the new plan, doesn’t have any immediate incentive at all. Nothing it does will result in more revenue from students for a given year, since students will have already bought their plans. Any improvement or additional service offered is strictly a cost in their ledgers. \n“Even if someone’s goal isn’t to do those things, the incentive here will move them in the other direction. I don’t see how it couldn’t,” economics professor Peter Olson said.\nIt will be interesting to see how this turns out. RPS faces the competing incentives of keeping costs down with attracting students when they no longer have to buy meal plans. For now, students have to trust that the plan will work out. They have no other choice.