How can either private or public colleges and universities compete for students? Through what kinds of policies would they be most likely to encourage enrollment in their institutions? This study was designed to answer these questions, which have become relevant because of the near certainty that the majority of institutions will have a plethora of space and a shortage of applicants by 1985. To reflect the competitive strengths of different schools in both the private and public sector during the next ten years, postsecondary institutions were classified by selectivity and geographical recruitment areas. Various strategies for increasing enrollments are discussed and evaluated. The study concludes that the size of the private sector depends upon policies in the public sector. It is quite possible, with generous state funding, that public schools will maintain past levels of enrollment and impact enrollments in the private sector quite drastically. Private institutions will have no choice but to lower admission requirements to attract students who can afford to pay the high tuition fees they charge. The lesser private schools (except those catering to commuters, which presumably have the monopoly of location) will lose a considerable portion of their enrollment and may be forced to close. (Author/JMF)