Competition and Regulation in Postsecondary Education

The extent of competition among postsecondary education institutions is typically regulated by state coordinative and planning agencies as well as postsecondary education boards and institutions. In some instances, competition among institutions for new segments of the student market is discouraged by state regulation because offering more than one program in the same geographical area is thought to be wasteful. This article employs an industrial organization regulatory perspective to inquire under what enrollment and other conditions a more relaxed state government regulatory posture is likely to satisfy public preferences for postsecondary education services.