This paper examines the post-Communist Czech Republic in order to investigate the possible consequences were a major U.S. state to adopt universal education vouchers. Although public schools in the Czech Republic were relatively good post-communism, there was an initial surge in demand for private alternatives. Private schools appear to have arisen in response to distinct market incentives. They are more common where public school inertia has resulted in an undersupply of available slots and where the public schools appear to be doing a worse job in their primary educational mission, as demonstrated by the success rate of academic high schools in obtaining admission to the top universities for their graduates. There is evidence that public schools facing private competition do improve their performance. They spend more of their resources on classroom instruction and significantly reduce class size. Evidence from the adoption of the Czech nationwide voucher scheme supports the claim of advocates for such systems. Private schools supported by vouchers increased educational opportunity and spurred public schools to improved performance. They also spurred public schools to engage in bureaucratic maneuvering designed to preserve their entrenched position. (Contains 11 tables and 43 references.) (SM)