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Extending Cooper & Ross’ analysis of competition in markets with informational asymmetry, and Hirth’s researches on non-profit nursing homes in the United States, this paper developed a competitive model for a mixed market of for-profit and non-profit private universities. The model proved the spillover impact of non-profit universities on the overall quality of the market. As a result, the paper sheds some insights on the quality problems faced by private universities in Vietnam, and also offers some policy implications to improve the overall quality of this market.

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