Abstract
This paper analyses the factors limiting marketisation in Italian higher education. The analysis was conducted by adopting Jongbloed's framework. Using empirical data on the Italian higher education system, it is shown that only a small amount of funds are allocated to Italian universities based on market mechanisms. The analysis shows that the development of the market has been limited by two different factors. On the provider side, university behaviour is restricted by strict legislation whereas on the consumer side, market impacts are limited because of cultural and environmental factors.