Private education, positional goods, and the arms race problem

Abstract

This article defends the view that markets in education need to be restricted, in light of the problem posed by what I call the ‘educational arms race’. Markets in education have a tendency to distort an important balance between education’s role as a gatekeeper – its ‘screening’ function – and its role in helping children develop as part of a preparation for adult life. This tendency is not merely a contingent fact about markets: It can be traced to ways in which education is a partly positional good and how markets respond to (and stimulate) demand for positional goods over non-positional goods. The problem with arms races is that they allow markets to facilitate wider use of defection in ..