Children of a lesser god? demand-driven mechanism and the potential rise of unequal competition in IHES

This study aims to determine whether the introduction of input-oriented resource allocation in the Italian higher education system has resulted in behaviours influencing the attractiveness of universities. The results of an analysis of panel data spanning 57 public universities reveal that the geographical characteristics in which they operate seem to restrict the autonomy of some universities, harming their ability to choose a proper solution that improves attractiveness and results in gaining more funds. These findings emphasise the pivotal role played by external factors in the extent to which university behaviour can impact attractiveness, while also suggesting that a level playing field can only be guaranteed within the system if governments reduce the internal disparities in Italian tertiary education.