When considering college education, one must consider the quality of the “bundle” that is being bought. The package one is buying goes beyond just classes and diploma.
College is better understood if seen as a club. It is special kind of club that bundles together content, social experience, and badge.
Content usually comes from classes, but the social experience and the badge are features more akin to exclusive clubs — the more desirable and selective, the better.
People may think one attends college to learn a profession. They seem also to consider the content taught in classes is the most important part of what college is.
I believe this is a naïve point of view. Content plays only a minor role and college should, instead, be seen as a special club that bundles together content, social experience, and badge.
A club is any social organization with the following two features:
The trigger for a club to form can be common ancestry, geographical proximity, specific shared interests, etc. There are several examples of clubs in society. The typical workplace is a club and the same can be said of military service, sports clubs, and so on.
Clubs vary both in terms of the criteria for the filtering process and the meaningfulness of the time together. For instance, during war, members of the military club face life-or-death experiences. Some portion of their strong sense of camaraderie stems from having shared very meaningful experiences.
In the bundle offered by colleges to their members, the social experience is the other members and the many opportunities to spend time with them over the course of 4+ years.
In terms of meaningfulness of time spent together, college ranks very high. It is a rite of passage that marks the beginning of adulthood and brings profound changes to life. It also often involves moving out of home and forging lifelong relationships.
If we had all classes removed, if there was no formal content left, but we still kept a similar social experience happening in these formative years, I believe such club would still be very relevant in society.
The badge is having been accepted by the club. The badge is not, as one could expect, the diploma.
In fact, for any famous college, the actual filtering step is admissions, not coursework. Simply look at the acceptance rates versus the failure rates in those institutions, it is clear that being accepted is the step with the most signaling value.
A club is really successful if:
The more widespread and deep-seated the recognition, the better. Successful colleges draw their notable-ness from being associated with famous people (e.g., faculty, alumni, donors) and making progress against some of the hardest problems humankind face (a.k.a. doing scientific research).
Imagine anyone could say they went to Harvard. The value of the Harvard badge would decrease a lot because it would signal less information. A significant part of a club badge lies in its scarcity, and that’s why clubs try to be exclusive.
Note that, because a large pool of high quality candidates is required in the first place, a club can only be highly selective if it is also highly desirable.
The key mechanism for increasing how desirable a college is relies on the badge and its remarkable characteristics.
First, the badge is publicly visible. The badge everyone holds is exposed to the world over their entire life (and afterwards). We are trained to know the alma mater of all our friends, but also from high-status people. You are certainly aware that Bill Gates and Mark Zuckerberg went to Harvard as undergrads, right?
The badge is also highly conductive. It acts like a sponge for success and status. The impressive feats of people related to the institution are absorbed by the badge and transmitted to newer members. For example, the fact Richard Feynman and many other Nobel Laureates are/were lecturers at Caltech somehow accrues prestige to their newest freshman. The young student doesn’t need to do anything (beyond getting admitted, of course).
If we can agree that famous colleges are elite clubs, then we may get insights about why they can get away with being so expensive. If college provides its members with access but also (very importantly) validation, how much is it worth? Hard to tell exactly, but this hints us on why the riches seem to buy it at (basically) any price.
But what I really worry the most nowadays is about people in debt to pay for their education at poorly regarded institutions. They seem to mistake diploma for badge and they very likely overpay for the anemic bundle they get.
Up next: The feedback loop that makes universities special