Mark A. Zupan is dean of the University of Arizona's Eller College of Business and Public Administration.
Universities are America's most important source of human capital.
State universities, in particular, cannot charge premium prices even when customers might be willing to pay. In this sense, public oversight restricts us from the marketplace, but it does not protect us from market forces on many other fronts. Since 1970, for example, the number of business schools has more than doubled and MBA enrollments have increased fifteen-fold. In the long run, competition is healthy but it also creates important short-run challenges. Business schools, especially at public universities, face growing student numbers and a small supply of new faculty.