Education, Economics, And The Profit Motive

Education might very well be on the edge of monumental changes which could shake the foundation of its organization and delivery for centuries. While not without problems, and with considerable issues still to be settled, online education promises a quantum leap in productivity and reach.

While the for-profit schools were first to jump on this, Ivy League universities are now following, and could threaten the position and business model of the former. We have a feeling that the business model of the for-profit educational sector is somewhat problematic, as the sector potentially suffers from a number of market imperfections.

Any long-term investor in these companies should have a keen understanding of these issues and the ways in which their company is doing to addressing them. Here is a short overview.

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