Their resources are linked both to their enrollment and to their ability to meet identified performance objectives. Fiscal rewards are bestowed upon schools that meet their objectives while fiscal penalties are imposed upon those that do not.
Charter schools are one kind of market-driven school.
Advantages Proponents believe that market-driven schools will break the monopoly of public education expand the range of education opportunities available to students improve student motivation and achievement increase parents' involvement in their children's education increase accountability improve teacher morale improve the quality of education lower the costs of education by cutting out all expenditures not related to consumer demand. Background Market-driven schools are based on the economic theory of public choice, which links performance and resources. Associated with Reaganomics and deregulation, the concept has been a recurrent theme of American education reform since the 1980s. It assumes that the threat of reduced resources provides sufficient motivation to schools to improve their performance. Some have argued that market-driven schools presage public funding for private schools.