ABSTRACT
Two economists examine the effects of increasing concentration of power in university decision-making structures. Drawing on neo-classical growth theory and the new institutional economics, they demonstrate the negative effects of power concentration and illuminate the weaknesses of absolutist institutions. They identify a critical juncture at Saint Louis University, in which the administration’s encroachment into spheres formerly under the control of the faculty increased in ways that prompted faculty resistance. The absence of pluralistic and decentralized institutions where faculty and administrators could meet to resolve conflict encouraged action outside of existing institutions – action that spiraled beyond the capacity of the administration to control – and provided an opportunity to overturn the status quo.
