This is a fair point. I'm using the term probably in all of the ways you mention, plus another. Partly thats rhetorical, and partly analytical. Huge portions

This is a fair point. I'm using the term probably in all of the ways you mention, plus another. Partly thats rhetorical, and partly analytical. Huge portions of reserach are paid for by the US government. The logic is to finance knowledge as an economic public good (ie, can't patent science, ideas, flow freely etc). That is the positive externality. And we fund it like we fund NASA and Defense, a communal public works. Or like roads, etc. The idea is that all should be able to drive on the information superhighway...etc (i know, this is stretching slightly optimistic, traffic etc;). But this is not what we are getting out of the system as a society. & You raise some interesting points on what that front...But it just points to the answer: Universities are acting as hierarchies (ie, like firms) with monopolistic pricing power under assumptions of profit maximization (viz, rent seeking). You have to ask your self: self: why are these 20-30Bn investment hedge funds being not only tx exempted by the government, but having their operations/cost based subsidezed (viz, grants) and having their revenues subsidized (viz subsidized loans, grants) etc? These institutions are highjacking huge flows of money that are supposed to be charitable contributions. The are leveraging the prestige of the projects financed to create a massive rent-seeking opportunities for themselves, not to further the free flow of information. This rent seeking is counterthetical to their stated mission and the public policy principles that underly their tax-exmpt and socially privledged status. The degree as entrenched credential is now a giant "hold-up-problem", with universities as the opportunists. And With kids as the hostages. They should just hand out Birkin Bags at graduation. In the latest colors. To he!! with the sheepskin. =D http://en.wikipedia.org/wiki/Birkin_bag http://en.wikipedia.org/wiki/Birkin_bag [edits]