[lbo-talk] education bubble

[Gail Brock]

I think you're somewhat overestimating academics' commitment to economic 
efficiency in their institutions and underestimating academics' status anxiety.  
Even without the economic market competition, you'd see status market 
competition.  In fact, I think you have seen it over the past twenty years in 
public institutions.  In part it's a justification of high salaries for 
administrators and star faculty, but everyone goes along because the amenities 
are part of the image of a world-class institution, and even the teaching 
adjuncts seem to get a psychological reward from that.

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Wojtek S <wsoko52 at gmail.com>(Fri, September 10, 2010 9:04:51 AM):

And do not forget the effect of market competition.  The competition
for students can be fierce - which forces individual institutions to woo
prospective tuition paying clients ..errr students with lavish perks and
amenities, like recreational and athletic facilities, newer and bigger
buildings, exclusive transportation system (which is often a necessity due
to the dearth of public transportation in most localities outside New York,
Chicago, DC and Boston) as well as offering various forms of financial
assistance (which must be offset by tuition payments either current or
deferred.)

I am pretty sure that making education "free" to everyone (i.e. paid for by
public funds) wold eliminate much of that competition for paying clients and
the "transaction costs" associated with it, thus reducing the overall cost
of education independently of other factors (such as bloated
administration.)

Wojtek