Shibin expects to receive his Ph.D. soon from a highly-regarded program. Seeking to hire him for their faculty, the accounting group at State University in New York City invited Shibin to interview. After finalizing dates, Shibin purchased a round-trip airline ticket for $400. Just after he purchased the ticket, Shibin received a call from Prestige University, a private university, also in New York City. The accounting faculty at Prestige had heard that Shibin was coming to State University and wanted to interview him for a position at Prestige as well. They were willing to conduct their interview the day after the interview at State. Shibin, of course, was ecstatic with the chance to interview at two well-regarded institutions.
Shibin called his travel agent to change his ticket. The travel agent informed Shibin that while the price would stay the same, as per airline rules, the change in plans would trigger a penalty of $100.

Required:
How should Shibin allocate the total cost of the airfare (i.e., $500) between the two schools? What is the purpose of this allocation? What factors should he consider as he chooses among alternate splits?