Abstract:

Purpose: The objective of this article is to determine the opportunities for game theory application and promote beneficial impacts from its introduction into education management system. Methodology: While doing research the following methods were used: method of expert evaluations, data analysis, economic and mathematical methods. Management content of any economy branch, particularly education, tends to select constant optimal decisions. Use of mathematical framework is one of the ways of effective decision-making processes improvement. The authors offer theoretical and game model to apply for description of education quality challenges. Discrete game in normal form is built up, whose participants are university of state or municipal ownership and state authorities or local territorial community council. Gamers’ strategies include their different attitude to education services quality. Payoff matrixes are shaped on the basis of significant advantage multiplied by results. The game solution is achieved within clear strategies focused on non-beneficial university strategies to work formally or ‘simulate’. This implies that in the future a number of ‘Universities-simulators’ will grow whereas the quality of education services will decline. Conclusions: To change the situation as for beneficial and non-beneficial strategies for society it is of great necessity to alter the payoff system for both University and State/Community. This situation may alter only in case of institutional changes which, first and foremost, should begin from granting of real autonomy (not formal one which operates these days) as well as freedom to Universities. We should also rethink of the operation of the current National Agency on higher education quality assurance and reconsideration the formula of university funding alongside with taxation approaches.