You completely missed my point.  


First off, I did not insinuate people of faith cannot read.  That wasn't my point, and I'm not sure why you decided to take it that way.  My insinuation was that quality of a school isn't the only factor people would use when making a decision on where to send their kids.  Values is just one reason.  Cost is another.  Maybe School B is cheaper, and draws in more students because parents would rather spend their money on other things.  But that means School A has to raise their prices to afford better teachers because they have fewer students.  Or maybe School B just has a better marketing program.  Much like your For-Profit colleges today, you'd see the rise of For-Profit schools.  Why do you think universities such as University of Phoenix are able to succeed?  Those schools churn out bad degrees that are worthless when it comes to getting a job.  


Yes, there are incentives to innovate.  Monetary incentives are not the only incentives.  Teaching is an incredibly difficult profession, one that does not attract everyone.  Teachers are always innovating.  Not everything works on Free Market logic.  Education is one of those things.

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