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Modeling the Optimization Problem of a Public University

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  • Philippe Cyrenne
  • Hugh Grant

Abstract

In this paper, we examine the factors that influence the reputation or prestige of a public university. We develop a model of university behavior that indicates how the decisions made by university officials would be chosen in order to maximize their respective reputations. In doing so, we assume that reputation is enhanced by the quality of teaching and research produced as well as the service provided to the community in terms of the provision of publicly funded education services. We argue that the relative weights placed on these intermediate outputs may vary by university type as well as the means of producing them. Given the optimization problem of a university, a number of interesting conditions governing the policy variables chosen by the officials of public universities are obtained.

Suggested Citation

  • Philippe Cyrenne & Hugh Grant, 2012. "Modeling the Optimization Problem of a Public University," Departmental Working Papers 2012-02, The University of Winnipeg, Department of Economics.
  • Handle: RePEc:win:winwop:2012-02
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    File URL: http://economics.uwinnipeg.ca/RePEc/winwop/2012-02.pdf
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    1. Coates, Dennis & Humphreys, Brad R, 2002. "The Supply of University Enrollments: University Administrators as Utility Maximizing Bureaucrats," Public Choice, Springer, vol. 110(3-4), pages 365-392, March.
    2. Borooah, Vani K, 1994. "Modelling Institutional Behaviour: A Microeconomic Analysis of University Management," Public Choice, Springer, vol. 81(1-2), pages 101-124, October.
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