If they just had to rely on the free market, colleges would have closed a long time ago. They can't improve anymore because they don't get any signal they're do

If they just had to rely on the free market, colleges would have closed a long time ago. They can't improve anymore because they don't get any signal they're doing a good job. If I'm doing a good job, I know because people will pay me or I win (cold)battles in war. Instead in these peaceful times, colleges don't have a way of knowing for sure they're doing good, except with self-congratulations and educational theories. At the same time, I think if it wasn't for State licenses, regulations that force to have a degree and a culture that discriminate against people without a state-supported college degree, we would see no advantages for the college degree holder, at least with current colleges.