From location to collusion: The heterogeneous ways in which private schools navigate the educational marketplace

The non-subsidized private school sector is a privileged landscape for assessing market theories’ promises and assumptions. Unlike quasi markets with public-financed private schools, the fully private sector is a “purer market,” where the price is expected to be determined by competitive dynamics, profit is allowed, and fewer regulations mold the schools’ competitive actions. Drawing on interviews with 32 headteachers, we explore the competitive strategies private schools adopt in Chile to contribute to the discussion regarding the rationale of market-oriented policies and critically examine its limits. Our findings identify a typology of schools based on perceptions of competition and a broad set of competitive responses, including location decisions, market scanning, marketing, differentiation, and pricing tactics to attract and retain students. These practices focus not primarily on pedagogical issues but on symbolic aspects. Although some strategies mirror those observed in quasi-markets, they are distinguished by greater sophistication and a more business-oriented approach.