Competition between State Universities
AbstractWe analyse how state university competition to collect resources may a¤ect both the quality of teaching and research. By considering a set-up where two state universities behave strategically, we model their interaction with potential students as a sequential noncooperative game. We show that di¤erent types of equilibrium may arise, depending on the mix of research and teaching activity supplied by each university, and the mix of low and high ability students attending each university. The most e¢ cient equilibrium results in the creation of an élite institution attended only by high ability students. Low ability students are segregated in the other university, but obtain the same teaching quality level and pay the same tuition fees.
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Bibliographic InfoPaper provided by Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa in its series Working Papers - Economics with number wp2010_02.rdf.
Length: 25 pages
Date of creation: 2010
Date of revision:
University Competition; Research; Tuition Fees;
Other versions of this item:
- H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
- I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
- I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
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