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Good point but the cap at the v. top and the idea is still to earn so much more on the lucky winners to make it more affordable for majority who don't make the cap. i.e. the cap while understandable is actually working at cross-purposes to the logic of the idea.
I didn't realize that. The main ISA I know about is Lambda School's, and theirs is definitely not aiming to make money on the outliers. Because they run the whole process, including admissions, they don't have to worry about a "majority who don't make the cap."
perhaps strongest theoretical case for ISAs is like VC, where a few outlier winners offset many ho-hum results – but ISAs in practice, like Lambda, find lower caps engender more trust/alignment
low-cap ISAs (like Lambda, where $30k cap just ~1.5x up-front $20k cost) still likely to get large noncash reputational/affiliational/network benefits from their capped-out earners, if (as with Lambda) they're working those missionary/community angles
It's like politicians crying about the fact that in health insurance(!) currently healthy people pay for the others.
A portfolio approach to ISAs won't work, since the returns don't share VC's asymmetric profile (e.g no one earns $1B/y). The elegance of capped ISAs is that schools optimize for treatment effect, rather than selecting student to return 100x (as Ivy League might w. endowments)
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