The Incentives Faced by Administrators in Universities

The incentives faced by administrators within a system are never only market signals. Bureaucrats and administrators face incentives that have to do with the structure of the institution. They can respond to who are noisy actors or they can respond to simply a desire to keep a steady ship even if that is at significant odds with market incentives. Any mid to high quality private college or university in America would have at ever going bankrupt. The question of what the discipline they face is really difficult.