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In 2014, the Chilean government initiated a process of policy reform to regulate the education market in basic education with the objective of reducing the high level of inequity of their education system. Among the different issues tackled during this period, this research focuses on the political economy of the reform oriented to prohibit student selection, cost sharing and for-profit education. By investigating the policy processes that led to the adoption of this reform and the factors that shaped the process of policy discussion, the research provides evidence on the opportunities and challenges of the policy reforms oriented to regulate education markets.