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Beginning in the mid-1980s, European governments have increasingly implemented performance-based funding systems for higher education. While a focus on the transnational pressures that contributed to the widespread adoption of performance-based funding in Europe accounts for the impetus for performance-based funding policies, it fails to address how and why the resultant performance-based funding policies are as distinct and different as they are. In this paper, I argue that an institutional logics perspective offers a theoretical account of the performance-based funding policy formation process. I use the United Kingdom (UK), Germany, and France as case studies. I contend that in these three cases, different local logics drove the performance-based funding policy formation process. [ABSTRACT FROM AUTHOR]