Rank Delusions
What accounts for the remarkable stability of university rankings in comparison to the instability of big business, and for that matter, other nonprofits? More important, what implications does this have for university management and higher-education policy?
Several features of universities are important in explaining these outcomes. First, unlike other enterprises, universities almost never die and rarely merge. The 14 universities that formed the Association of American Universities, in 1900, are all still in existence, as are all those admitted since then.
Second, and directly related, universities are what are called, in the literature on industrial organization, “single-plant firms.” The vast majority have one (or at most two) main campuses, with a few peripheral offshoots. Apparent exceptions like the University of California system are in reality a set of distinct universities, linked only by notionally shared governance.
