Thursday, September 23, 2010

Incentives Matter

by Daniel L. Bennett

Economist Gary Wolfram reviewed CCAP's recent study on for-profit education for the Pope Center's Clarion Call. He largely agreed with our conclusion that incentives matter in education:
The profit motive creates a strong incentive to satisfy customers (in this case, students) at the lowest cost. The lack of the profit motive means less attention to the needs of students and less effort at making education affordable for them. That’s probably the most crucial point of all.

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