Performance indicators and performance-based funding are becoming integral components of higher education (HE) policy around the globe. We explore some of the implications of this type of policy on Norwegian HE. We believe the case will be of significant interest to policy-makers, stakeholders and academics alike, not least because our empirical analysis indicates that competition for students is relatively stable and not particularly aggressive across groups of higher education institutions (HEIs) and over time. Despite this fact, a few HEIs have improved their share of applications, while others have fallen behind in the competition for students. The paper is based on a unique data set drawn from the Norwegian Universities and Colleges Admission Service during the period 2003-2009. (Contains 1 figure, 2 tables, and 7 notes.)