Only a few public universities (Michigan, UVa, UC-Berkeley, etc.) can demand such premiums for domestic OOS students. Lets use UIUC as an example. They badly wanted to increase OOS (domestic) enrollment, but had to fall back on international students. There simply wasn’t the demand from domestic students to pay the OOS tuition premium, even at UIUC.
I think too many administrators (and faculty) think the easy answer is increasing domestic OOS enrollment, but the only option for most is increasing the number of international students.
http://www.cnn.com/interactive/2015/07/us/culture-clash-american-story/
Looking at state of origin for last year’s UW-Madison freshman class…
Wisconsin 3749
Minnesota 756
Illinois 599
International 350
New York 127
California 127
New Jersey 63
Maryland 47
…
UW-Madison is already 60% in-state, 40% OOS (domestic and international). If the UW system wants to increase the number of full pay OOS students, they likely would also need to depend on international students.