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University Merging Process: A Guideline Proposal for Excellence-Enhancing

Marisa Hidalgo-Hidalgo () and Valera Guadalupe
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Valera Guadalupe: Departamento de Economía, Métodos Cuantitativos e Historia Económica, Universidad Pablo de Olavide, Ctra de Utrera Km.1, E-41013, Sevilla, Spain

The B.E. Journal of Economic Analysis & Policy, 2016, vol. 16, issue 3, 1359-1386

Abstract: There is a recent trend toward encouraging universities to merge. This policy is based on the idea that mergers create synergy gains that enhance the prestige of universities by increasing their international visibility. However, this process may reduce competition for both research funds and professors in national higher education markets. This paper analyzes whether mergers among universities are optimal from an excellence perspective. We find that as the heterogeneity between the initial reputations of potentially merging institutions increases, the amount of funds required for mergers to achieve higher excellence than competition also increases.

Keywords: higher education; economics of science; university competition; university mergers (search for similar items in EconPapers)
JEL-codes: H52 I23 I28 J24 (search for similar items in EconPapers)
Date: 2016
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