The Market Model and Higher Education

Abstract

This paper deals with the increasing tendency of government to finance higher education through students, a trend having important policy implications for higher education. This trend and numerous related governmental decisions have been based almost exclusively upon economic rationale. The rationale itself has largely been developed and couched in terms of one particular concept the perfectly competitive market, or more generally, the market model. This is clearly evidenced in Federal policy statements and various position papers concerned with changing patterns of governmental financing of higher education.' These documents indicate, in part, the extent to which the market concept is presently being used to support and justify Federal policy decisions regarding higher education, and how the market concept is tied to funding higher education through students.