«Economy of Scale» or «Economy of Scope»: What Universities Should Rely on in the Competitive Struggle?

Abstract

This conceptual article presents microeconomic approaches to analyzing the shifts in universities’ expenses and the saving effects of the scale and scope of HEI’s activities. The authors provide an overview of econometric studies which assess the effects considered for universities in some countries. As a result, there comes to be questioned the economic feasibility of consolidating and expanding the universities’ activities, the reasonability of combining research with educational activities. The discussion concerns the transformation of the universities’ economy in the context of education digitalization, the prospects of the «economy of scale» and the «economy of scope» to be compared. The conclusions are drawn on the possible benefit for large universities, on its consequences for competition in higher education, and on the partnership benefits for all market players.