The research examines whether and how performance-based funding formulas adopted by state policymakers for their public colleges and universities influence administrative behavior, both across and within institutions in states where the formulas are in place. The research builds from the public management literature and argues that despite the formulas being premised as a way to improve college and university performance, they must first influence administrative behavior at the institutional-level. If the formulas do not influence administrative behavior, there is little expectation for improved performance. However, if administrators do respond, how they respond can have a conditional effect on the success of performance-based funding and college and university performance. The research examines administrative responsiveness through a variety of managerial behaviors and decision-making, such as changes in budgetary patterns and capacity-building efforts. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page: http://www.proquest.com.bibliotheek.ehb.be/en-US/products/dissertations/individuals.shtml.]