These two papers present opposing arguments regarding the issue of using market factors to determine faculty salaries. In the first paper, Thomas E. Wagner begins by outlining factors that are relevant to determining faculty pay, including years of service, academic rank, teaching ability, research and scholarship, community and institutional service, type and location of the college, and market value of the professor's discipline. Next, five approaches to determining institutional salary rates are highlighted and the applicability of the principle of "pay for market value" to each of the models is discussed. Finally, Wagner describes the method of determining faculty salaries used at Oakland University, which uses a combination of years of service, rank, market value, and merit component. In the second paper, Billie Wright Dziech argues against market value salary structures, indicating that the current competition with business and industry is a temporary, rather than a permanent condition. She urges colleges to be cautious about institutionalizing the practice, stressing that community colleges cannot compete financially with business and industry, that these institutions lack the flexibility to respond to fluctuations in the market place with salary cuts and lay offs of tenured personnel, that wide gaps in compensation promote internal conflict, and that devaluing the salaries of humanities faculty undermines the intrinsic values of higher education. (HB)