Economics, Competition and Academia

Book excerpt: There is much to be praised in this book. It is interesting and compelling reading. . . Economics, Competition and Academia is a well written book and well worth reading. It provides a coherent perspective of the main avenues by which societies have provided resources for higher education over many centuries. The views of prominent philosophers and economists on the economics of higher education have been highlighted as well. I recommend that it be read by anyone interested in the economics of higher education. James R. Wible, History of Economic Ideas In this exceptionally well written and highly perceptive book, Stabile has provided a unique perspective on the continuing debate over whether universities should be funded from non-fee sources (endowments, public funding) or from fees. He locates the philosophical roots of that debate in ancient Greece, with the sophists selling their services as teachers for fees and Plato and Aristotle virtuously teaching without fees (made possible by personal wealth). He then traces how virtue and sophism became entangled and morphed into various hybrid arrangements throughout the development of modern universities. As universities continue to evolve in their perceptions of how to match their functions to the ever-changing sets of financial constraints and opportunities, the relevance of this book will continue to grow. It should be on the must read list for all who are involved in modern higher education. Charles G. Leathers, University of Alabama, US Anyone interested in the important, current debate over assessing educational outcomes should read this book. It offers important historical perspectives on the value of education. Understanding the different points of view on the value of education is the first step in assessing what outcomes one wants to achieve with current education policies. Andrew F. Kozak, St. Mary s College of Maryland, US Stabile pulls together in one study of reasonable size the threads of higher education that span the centuries from ancient Greece to the twenty-first century United States. While readers may or may not agree with his conclusions, they will discover links between the past and the present and clues to the future of American higher education. David O. Whitten, Auburn University, US Donald Stabile places current concerns over the commercialization of academia in a historical context by describing the long-standing question of the extent to which market economics can and should be applied to higher education. The debate between Plato and Aristotle on one side and sophists on the other provides a foundation for the modern debate of endowment versus tuition models. The author tackles the intellectual discourse over the mission of higher education and the effect markets and competition might have on it. The discussion encompasses the ideas on higher education of leading economic thinkers such as Adam Smith, Jeremy Benthan, John Stuart Mill, Alfred Marshall, Thorstein Veblen and John K. Galbraith and identifies them as supporters of either sophism or virtue. Included, too, are the thoughts of educators and policymakers influenced by free market ideas, such as Benjamin Rush, Francis Wayland and Charles W. Eliot, as well as those opposed to them. In addition, the author explores the development of collegiate business schools in the US and how they were justified on the basis of virtue. The book concludes with a section on for-profit colleges and their relationship to sophism. This fascinating study of the centuries-old intellectual debate over the mission of academia will appeal to all those involved with higher education. Historians of economic thought will find the influence of economic ideas on this debate of great interest.