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The market alternative in education is gaining ground in policy-making circles on both sides of the Atlantic. Parental choice and school competition are seen as ways of achieving reform and raising standards while at the same time reducing State intervention into education planning. This paper interrogates the arguments made for markets and against public monopoly schooling,, and it is argued that on both counts of advocates are partial and flawed. The failure to address the bases and effects of inequalities of the market are given particular attention. It is argued that markets in education provide the possibility for the pursuit of class advantage and generate a differentiated and stratified system of schooling. [ABSTRACT FROM AUTHOR]