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Should Universities Embrace Market Forces in Deciding What to Teach and How?

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Should Universities embrace market forces in deciding what to teach and how?

Whether or not market forces should be able to influence higher education is a hotly debated topic. People look at it from many different angles, such as free market or one with restriction or a mixture of the two. If market forces were to influence how and what was taught, this would mean that the distribution of subject would be entirely based on what is in high demand and in low supply. This would result in popular courses such as business and management being highly emphasised. So we must look at whether or not this free market approach is going to have detrimental effects upon our education system. Firstly and foremost it can clearly be seen that if what is going to be taught is left to the free market forces then there may well be a large misdistribution of resources in certain areas. The most popular subjects would be the most taught and therefore probably the best as if many people are applying for these popular courses then the university will focus on obtaining the best lecturers for them. This could act as a sort of accelerator affect for the course, as it becomes better taught more people would apply and this would lead to further misdistribution. The result of this could also be that less applied for courses may be neglected. This could have a very negative affect upon the economy as a whole as these less applied for courses can very often be the more specialised courses. So we may end up with far less specialists in our labour market. However in this situation a free market economist would argue that the market will reallocate the resources (in this case labour) by making the jobs that far less people are able to do far higher paying. This would therefore incentivise people to study courses for these jobs at universities and demand would rise for them. Although this

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