Just to give away the answer at the outset – I think that there is an important lesson to be learned, because the basic business model of a research university is similar to the business model of a traditional newspaper, in that it relies up the aggregation of two goods, one basically public the other basically private, along with the sale of the two as a forced “bundle.” What kills the business model is when customers figure out how to get one without the other. Thus the shopping mall killed the traditional department store by disaggregating the sale of different categories of goods. The internet is killing the traditional newspaper by disaggregating the different “sections” of the paper. The question for universities is whether they can preserve the “bundle” that they have traditionally been selling, or whether that two will inevitably be disaggregated.
So let me now take a stab at explaining what all that means.… Continue reading