Competition and Market Incentives in Higher Education

26 Pages Posted: 12 Dec 2007

Date Written: September 24, 2007

Abstract

This paper analyses forms of competition in the provision of tertiary education services that have arisen or could arise either because of liberalisations of the sector or because of reforms that introduce competition between public or private Higher Education Institutions (HEIs). The analysis suggests that there are important incentives that could be triggered by market forces and competition in the provision of tertiary education services. However there is a very important role for the state to play to insure that competitive forces deliver actual benefits to social welfare and do not distort the HEIs incentives to the detriment of basic research or of disciplines whose output cannot easily be appropriated in a market context.

Keywords: higher education, competition

JEL Classification: H52, I20

Suggested Citation

Mazzarotto, Nicola, Competition and Market Incentives in Higher Education (September 24, 2007). Available at SSRN: https://ssrn.com/abstract=1059881 or http://dx.doi.org/10.2139/ssrn.1059881

Nicola Mazzarotto (Contact Author)

affiliation not provided to SSRN

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