||Today, a rationale for the existence of universities and colleges is likely to be sought in terms of their economic relationships, with a focus on accountability and relevance. Moreover, while the importance of academic institutions for social and economic development through the expansion of educational opportunity and knowledge has been increasingly emphasized, the institutions themselves, exhibiting little evidence of economic efficiency and rationalization, appear to be on the road to failure. At the same time, clashes between academic freedom and accountability are becoming stronger as well as conflicts between equality and excellence. It is quite apparent that these are difficult times between universities and society in many countries. This includes some advanced countries which have achieved massification or even the post-massification stage of higher education (Arimoto, 1996; Kerr, 1994). In consideration of these and related issues, specific discussion needs to be focused on the development of market principles and mechanisms in the higher education system of Japan. .