<h1>745, ““Before I answer this post, let me make a comment about your other post, #732.””</h1>
<p>Thanks for your compliment. I do engineering and science. :-)</p>
<p>““It is not so much their definition of merit has swayed from academics as much as the fact that they don’t seem to have a definition of merit at all. If we don’t even have a definition, then how can we be in a position to modify the process when the “products” (think Iraq, Wall Street etc.) are clearly unsatisfactory?””</p>
<p>I suppose they do have some unspecified definitions of merit, otherwise elite admissions would drag on forever because of decision paralysis. Afterall, 3.9+ uwGPA and 750+ SAT I & II are still approximately the initial screen for the unhooked; national and international competition achievements as well as published research accomplishments are still sought after; ASB presidents, school-paper editors, and entrepreneurs, etc. are still highly valued. It isn’t a problem of nailing down more precise definitions of merit, but rather, the elites are also admitting under-qualified (by the unhooked standards) applicants with some other unspecified criteria. The real questions are, how much should private institutions be accountable to the public? And how much social responsibilities should be attached to private operations? Improving transparency of the selection process may at least allow closer public scrutiny.</p>
<p>““My other point is that there are those who seem to think the Adcoms have some kind of secret method of detecting future potential. I am unaware of any work in the social sciences that make it possible to do so at this time. If such a method exist, ones who have it would not be working on college admission, elite or otherwise;””</p>
<p>If this were the case, then it would be tricky to define what should be merit in elite admissions, as mentioned in my earlier message, #740. By-and-large whether it is elite admissions or job recruitment, we assume candidates with established records continuing to succeed… until they don’t. Actually, there maybe few other reliable way. Even the application of science is based on the assumption that statistically-robust patterns continuing to repeat (Science is science because it is verifiable for consistency with past patterns). Furthermore, each corporate or government sector has its own blend of filters, rewarding those with certain behaviors and marginalizing those incompatible. For example, it doesn’t matter how the elites have shaped their graduates, when executives in Wall St. firms are still awarded bonuses after losing huge sums of money ----- the clear message for them is to take even more risks, just in case they may hit home runs next time.</p>
<p>““My position is that the elites have failed America because they have always been the handmaiden of the ruling class… My working hypothesis is that the elites are only interested in protecting their brand by catering to the ruling class on one hand and project the image of a meritocracy to the public on the other. The government can force them to make a choice, cater to the rich and powerful and do without public funding, or take public research money and turn the schools into true meritocracies. (I am not holding my breath here, BTW).””</p>
<p>What we are seeing is the practices of rewarding merit with more power and the distribution of inherited power. Merit here is defined as what triggers the relevant system to reward more power which is also defined by the relevant system. Let me give a simplified example with the stock market. Profitable trades (merit as defined by the stock market) are rewarded with more money (power as defined by the stock market). Some participants are more successful and begin to steadily accumulate money. It takes effort to manage money and as more money are accumulated, more work are required to ensure the money flow. So the largest participants would acquire controlling positions in the stock market to secures their operations, with layers of lower-tiered participants helping around. And the rest of the participants are at the mercy of these people. I may not have described it very clearly, but I hope you see the underlying pattern. Variations of this hierarchy are all over the place in economical, political, professional, and social settings. Unless you prefer to re-define merit as only those traits beneficial to our society, this is indeed meritocracy although modified with human characteristics. It is really a matter of aligning private interests with public interests, such that private ventures shouldn’t be compromising our society.</p>
<p>This situation can actually be described by Coase Theorem, stating that “when trade in an externality is possible and there are no transaction costs, bargaining will lead to an efficient outcome regardless of the initial allocation of property rights” [url=<a href=“http://www.sjsu.edu/faculty/watkins/coasetheorem.htm]Illustration”>Illustration of the Coase Theorem]Illustration</a> of the Coase Theorem<a href=“some%20numerical%20errors%20in%20the%20tables,%20but%20can%20easily%20be%20corrected”>/url</a>. There is also an extension of the theorem by Steven Cheung suggesting that the details of bargaining arrangements would be determined by finite transaction costs. For example, because of the high-risk ventures in the financial markets, the Wall Street firms have cost the society a lot of money in terms of bailouts (negative externalities). Coase Theorem would suggest that the problem canbe solved by (a) the society paying the Wall Street firms to curb their high-risk ventures (socially unacceptable), or (b) assessing extra tax on the Wall Street firms to compensate for their high-risk ventures. Because of apparent political entanglement (finite transaction costs), we still haven’t implemented (b), so we are still in trouble. I suppose these are more directly related to the recent problems then tracing all the way back to elite admissions. :-)</p>