This book describes how and why educational choice movements will affect public education. It uses a public-choice approach to argue that both the supporters and opponents of private and school choice have failed to address several critical issues. Following an introductory chapter, chapter 2 is devoted to the rationale for contracting out instructional services, its development in other public services, and its advantages and disadvantages. Chapter 3 focuses on two issues critical to all forms of privatization--comparative costs and the evaluation of outcomes. The fourth chapter examines previous efforts to contract out instruction and issues for making such efforts more effective. Chapter 5 discusses educational vouchers and the broader political and intellectual controversy over whether certain services should be provided through our political or our economic system. Competition issues raised by voucher proposals are discussed in the sixth chapter, and chapter 7 takes up four independent arguments for vouchers. The eighth chapter presents a political analysis of voucher plans and an assessment of their chances for enactment. Chapter 9 discusses whether or not privatization will develop as a cottage industry or as a large-scale enterprise and explores the possibilities of franchising certain kinds of educational services. Proposals for the withdrawal of government support for and provision of education ("load shedding") are analyzed in the 10th chapter, with a focus on home schooling. The final chapter analyzes the ethical and professional issues raised by privatization in education. Seven tables, an index, and notes for each chapter are included. (LMI)