ABSTRACT
In this book we have described the results of a two-year study of higher education in the United States. Adopting an “industry” perspective and drawing on case studies of twenty-six institutions around the country, we have focused on the conduct of higher education providers as they serve customers in the four key revenue markets of student enrollments, research funding, public fiscal support, and private giving. In examining the conduct of providers in the industry, we have focused on the nature of competition among schools and the strategies schools pursue. We identified, in Chapter 3, a series of important decisions that shape the character of each institution. First is the decision whether to pursue prestige through any or all of the three prestige generators: student quality, research funding, and sports. Institutions are also shaped by decisions about the level and breadth of their offerings in each of these three markets as well as other markets. Institutional decisions about how much to invest in reputation shape institutions as well. Our conclusion is that institutional variation in the industry is due in large part to the strategic choices made within each institution on these dimensions.
