An Exploration of the Microeconomic Structure of the Academic Research Market: Perfect Competition

Abstract

This presentation and the accompanying paper will help institutions that conduct research and that are interested in developing a research portfolio develop a strategic approach. In the case of colleges in Ontario, and in particular, those in the CONII consortium, this is important since most of these institutions are in the early stages of developing research activity. Knowing the nature of the market will help CONII institutions locate themselves in the local research market and provide insight into what part of the market in which they may choose to compete. In addition, this paper will provide an understanding to the CONII institutions that this is not a market where price will enable one competitor to win a research contract from another. Having said this, purchasers of college researcher services impose a very high elasticity of demand.