This chapter discusses the applicability of the economic theory of markets to education with reference to education in India. It argues that there are distinctive features of educational markets: the process versus outcome distinction; the purchaser and consumer split; the mixed public and private nature of educational goods; contestation and disagreement concerning educational quality; and informational asymmetry between vendor and purchaser. Educational quality cannot be understood without reference to these features of educational markets. The role of the state in providing and regulating education in a partially marketised educational sector is discussed.