Pub. date: 2006 | Online Pub. Date: September 15, 2007 | DOI: 10.4135/9781412939584 | Print ISBN: 9780761930877 | Online ISBN: 9781412939584| Publisher:SAGE Publications, Inc.About this encyclopedia
Market Theory of Schooling
Under certain well-defined conditions, markets in which buyers and sellers meet to exchange goods and services are able to produce efficient results. However, most national governments all over the world exercised great care not to rely on markets to produce and distribute educational services, particularly at the K–12 level. The logic behind this mistrust of market forces is grounded on the assumption that markets experience imperfections in producing and distributing some goods and services. These goods and services are called public goods in the field of public administration. Governments must intervene in such markets to produce socially efficient results. Public goods theory uses five criteria for the evaluation of market efficiency for education and justification of government intervention. These five conditions must be met for a private sector of the economy—the market—to function efficiently. Indeed, these conditions are essential if the private sector is to perform in the public interest. ...