| Abstract: | This paper discusses problems of uncertainty and imperfect information that bear on organizational choices for schools. A model of choice under uncertainty illustrates the optimality of the equal opportunity provision of schooling in terms of inputs. The model shows why schools offer similar, diverse curricula as a means of allowing students to shed risk about ability and future employment.Elements of transactions cost economics are used to evaluate organizational choice for providing schooling. Problems of opportunism and regulatory costs are discussed in the cases of for-profit, non-profit, and publicly provided schools. |
