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Teaching versus research: a model of state univerity competition

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Author Info
DEL REY, Elena

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Abstract

This paper analyzes a competition game between two universities that teach and research in the same jurisdiction. The resulting equilibrium is unique and symmetric but differs according to preferences, technologies and public policy. The budget for university finance is exogenously given and consists of lump-sum amount and a per-student allocation. Under this finance structure, we are able to identify four types of equilibria characterized, respectively, by full-time teaching,full-time research, selective teaching plus research and mass teaching plus research. Conditions for each of them to take place are derived. By manipulating the parameters of the finance scheme the government can, in some cases, determine final levels of research and education quality.

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Publisher Info
Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2000030.

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Date of creation: 01 Apr 2000
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Handle: RePEc:cor:louvco:2000030

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Related research
Keywords: education; research; university competition.;

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Find related papers by JEL classification:
H8 - Public Economics - - Miscellaneous Issues
I2 - Health, Education, and Welfare - - Education
L3 - Industrial Organization - - Nonprofit Organizations and Public Enterprise

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Rothschild, Michael & White, Lawrence J, 1995. "The Analytics of the Pricing of Higher Education and Other Services in Which the Customers Are Inputs," Journal of Political Economy, University of Chicago Press, vol. 103(3), pages 573-86, June. [Downloadable!] (restricted)
  2. Ronald G. Ehrenberg, 1999. "Adam Smith Goes to College: An Economist Becomes an Academic Administrator," Journal of Economic Perspectives, American Economic Association, vol. 13(1), pages 99-116, Winter. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Richard A. Jensen & Marie C. Thursby, 2004. "Patent Licensing and the Research University," NBER Working Papers 10758, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. Marcel Gérard & Fernando Ruiz, 2006. "Interjurisdictional Competition for Higher Education and Firms," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  3. Brekke, Kurt Richard & Cellini, Roberto & Siciliani, Luigi & Straume, Odd Rune, 2008. "Competition and Quality in Regulated Markets: a Differential-Game Approach," CEPR Discussion Papers 6801, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  4. Kelchtermans, Stijn & Verboven, Frank, 2007. "Reducing Product Diversity in Higher Education," CEPR Discussion Papers 6508, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  5. John Beath & Joanna Poyago-Theotoky & David Ulph, 2005. "University Funding Systems and their Impact on Research and Teaching: A General Framework," Discussion Paper Series 2005_2, Department of Economics, Loughborough University. [Downloadable!]
  6. Gary-Bobo, Robert J. & Trannoy, Alain, 2005. "Efficient Tuition & Fees, Examinations and Subsidies," CEPR Discussion Papers 5011, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  7. Joan Rosselló, 2007. "Does a public university system avoid the stratification of public universities and the segregation of students?," DEA Working Papers 26, Universitat de les Illes Balears, Departament d'Economía Aplicada. [Downloadable!]
  8. Marie-Louise Vierø, 2008. "Academia or the Private Sector? Sorting of Agents into Output-Maximizing Institutions," Working Papers 1198, Queen's University, Department of Economics. [Downloadable!]
  9. Brekke, Kurt Richard & Cellini, Roberto & Siciliani, Luigi & Straume, Odd Rune, 2008. "Competition and quality in regulated markets with sluggish demand," CEPR Discussion Papers 6938, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  10. Tania Oliveira, 2006. "Tuition fees and admission standards: how do public and private universities really compete for students?," Discussion Papers in Economics 06/6, Department of Economics, University of Leicester. [Downloadable!]
  11. Joan Rosselló, 2006. "¿Deberían tener las universidades total autonomía en la selección del profesorado?," DEA Working Papers 25, Universitat de les Illes Balears, Departament d'Economía Aplicada. [Downloadable!]
  12. Geraint Johnes & T Agasisti, 2009. "Cost Structure, Efficiency and Heterogeneity in US Higher Education: An Empirical Analysis," Working Papers 005930, Lancaster University Management School, Economics Department. [Downloadable!]
  13. De Fraja, Gianni & Valbonesi, Paola, 2008. "The Design of the University System," CEPR Discussion Papers 7038, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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