Competition Between For-Profit and Non-Profit Universities.

This article discusses the rise of for-profit universities (FPUs) and their impact on non-profit universities (NPUs) in the United States. While there have been many empirical studies on this topic, a theoretical model to understand the implications is lacking. The paper proposes a theoretical model to explore the interactions between FPUs and NPUs, showing that the expansion of FPUs leads to contractions of NPUs and a decrease in total employment between the two sectors. The model is based on education production functions and the optimization strategies of FPUs and NPUs. The article also highlights the challenges and complexities in measuring the quality of education and the multidimensional outcomes produced by universities. Overall, the article sheds light on the competition between for-profit and non-profit universities and its effects on the postsecondary education landscape. [Extracted from the article]