Asymmetric information, public goods and central control: A critique of the West Review's education policy

The 'West Review' argues that the determination of tertiary sector educatio n program offerings should be decentralised by basing funding on student pr eferences. Research activities should be centrally prioritised with access to training being also dependent on such preferences. These views are quest ionable. Informational asymmetries imply that student sovereignty is a poor basis for designing programs and allocating research funds. Central priori tising cannot provide the benefits achievable in liberal structures which p romote diversity. The Review's endorsement of centralised university manage ment will realise measured cost savings but at the expense of quality.