A dynamic model of investment in research and teaching facilities in academic institutions
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Author(s)
Brudner, Amir
Gavious, Arieh
Date Issued
October 1, 2024
Journal
Annals of Operations Research
Publisher
Springer US
Citation
Brudner, A., Gavious, A. A dynamic model of investment in research and teaching facilities in academic institutions. Ann Oper Res 343, 67–85 (2024).
Version
Author's final manuscript
Abstract
Academic institutions seek to enhance their reputation, which is one of their primary assets. Doing so requires a massive investment of resources in research, recruiting a high-quality academic staff, and building campuses and state-of-the-art laboratories. To obtain the necessary financial resources, institutions must attract students, donors, and government budgets and grants. This paper introduces a stylized dynamic model demonstrating how an institution can best allocate its resources between teaching and research. We create a simulated competition that resembles the real situation where the enhancement of the institution’s reputation depends not only on its resource allocation but also on its competitors’ actions and reputation. We consider a two-institution contest over time using a differential game solution with open-loop strategies. In this case, the steady-state investment in research increases and the level of teaching decreases.
MIT Department
Massachusetts Institute of Technology. Department of Civil and Environmental Engineering
Terms of Use
Article is made available in accordance with the publisher's policy and may be subject to US copyright law. Please refer to the publisher's site for terms of use.
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DOI of Published Version
https://doi.org/10.1007/s10479-024-06232-w
