One possible explanation for tenure is that university departments
are to a large degree worker managed firms. One problem with a worker
managed firm is that the workers may spend their resources on
political rent seeking--trying to make sure they are in a dominant
coalition--rather than produ
> raise. Government subsidies and private charity give universities the
> cushion they need to avoid being put out of competition by
> performance-oriented for-profits.
> Prof. Bryan Caplan
While I share Bryan's skepticism, I don't buy his argument becaus
>Fred Foldvary wrote:
>> To an engineer, the best wire is gold.
>> To an economist, the best wire is copper.
>
>Incidentally I read somewhere that aluminum is the best conductor
>by weight, silver is the best by volume, and copper is second best
>either way. (But gold resists corrosion best.)
>
William Dickens wrote:
>
> Obviously the supply side of the academic labor market values this and is willing to
>forgo some money compensation to get it. Evidently the cost of producing this amenity
>for academic employers is generally less than the value to the employees so there are
>very fe
I don't see why any of the usual motivations would
be competed away, if they're true:
- up-or-out contracts efficient in presence of certain
forms of asymmetric information
- gives senior faculty incentive to hire junior faculty
better than they are
- academic freedom provided would cost
Obviously the supply side of the academic labor market values this and is willing to
forgo some money compensation to get it. Evidently the cost of producing this amenity
for academic employers is generally less than the value to the employees so there are
very few schools that don't promise te
