Mike Dariano

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How colleges are successful

Resources or students, resources or students, resources or students? Students!

Schools want to produce two things. One is rich alumni who give them money, and the other is high ratings from US News and World Report. Both goals can be pursued either by investing resources in recruiting better inputs or else by investing resources in doing a better job of teaching. It turns out to be more cost-effective to invest in recruiting better inputs. (Yglesias)

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