Ranking Systems

Many readers have expressed confusion regarding the Cluster Ranking System. The model stems from, well you guessed it, a cluster analysis of business schools. As with any ranking system (whether it is of NCAA football or GPA) one should use scholastic rankings with caution. Further, these rankings concern only general reputation of the school and often schools have domain specific ranks that are much stronger than their general rank.

Why use cluster analysis instead of a strict, floor to ceiling ordinal list?
Primarily because these strict ordinal lists have the danger of forcing distinctions among programs of virtually identical standing. In addition, the variables that we use to measure scholastic quality and opportunities are extremely imprecise. Thus, we are deluding ourselves if we believe that we can make meaningful distinctions among schools of similar standing. However, we can make broad distinctions among schools of dissimilar standing.

Why not simply use a "top 5, top 10" list?
These lists are disfavored since they suggest that schools are highly discontinuous in their opportunity sets. For instance, the #11 school (however defined) might be mistakenly viewed as being meaninfullly inferior to the #10 school. Another reason that these lists are disfavored is that the standing of institutions rarely change as rapidly as their standings in league tables change (Yes, glaciers do move, but one should not confuse them with cheetahs).

Why not call them Tier I or Tier II etc.?
I suppose one could use these terms, but I prefer the descriptive labels. I like the way that the labels call attention to the proximity of the cluster to the elite schools. Thus, Near Elite makes it clear that these are prestigious schools if not quite on the level of the most esteemed general reputation schools.

Why do these clusters include only US schools?
This is certainly a legitimate criticism. The main reason concerns the type of information available from each school. However, one can rather easily project non-US schools onto this cluster system. For instance, INSEAD and LBS could be included in the Elite cluster.

Ultraelite- The 7 most esteemed US schools, essentially the top of the elite group.

Elite- The most selective group of school (used as both a generic term for all 16 top schools and and a specific term for the schools just below the Ultraelite)

Transelite- The schools that overlap with many of the Elite group. This handful of schools essentially "blends into" the lower edge of the Elite group.

Near Elite- Usually relatively small and highly specialized schools. Within specific domains such as finance and marketing these schools are outstanding.

Near Elite Frontier: These are nationally recognized programs that are less selective than the Near Elite schools. Many offer outstanding opportunities for budget conscious consumers.

Hjort