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University merging process: a guideline proposal for excellence-enhancing

Marisa Hidalgo-Hidalgo () and Guadalupe Valera ()
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Guadalupe Valera: Department of Economics, Universidad Pablo de Olavide

No 16.08, Working Papers from Universidad Pablo de Olavide, Department of Economics

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 analyses whether mergers among universities are optimal from an excellence perspective. We find that the higher the heterogeneity between the initial reputations of potentially merging institutions, the greater the amount of funds required for mergers to achieve higher excellence than competition.

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)
Pages: 30 pages
Date: 2016-05
New Economics Papers: this item is included in nep-edu and nep-knm
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