The Application of Dually Competitive Models to Explain Competition in Iranian Universities

The competition among firms is a basic argument in microeconomics. Firms in economy, behave as profit or non-profit ones. The active firms in service industries such as education, health care, drama products, consorts, sports, and etc, don’t pursue the profit such as profit firms. The competition model among non profit firms is similar to competition model among profit ones, but some differences are observed. This paper seeks to design a dually competition model for Iranian universities (public and private universities) by using of optimization approach in mathematical economics and microeconomics principles. The model, is discussed includes different assumptions about teaching and research excellence in absolute and comparative frame. The results show that the support costs for universities in both dually competition model Follower- Follower and Leader- Follower are different. The costs are determined in relation to conditions for universities in both models. Due to the finding of this research in the Leader- Follower model, Leader University doesn’t decline less costs than Follower University. The support costs of Leader University would be less than Follower University, when the relationship mentioned in paper, has been appointed.