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Case Western is in Cleveland and Carnegie Mellon in Pittsburgh is close.

I agree, Cleveland is a strange choice - for more than a lot of reasons. Personally I'm rooting for any of these cities: Chicago, Austin, Madison, Portland, Seattle or Minneapolis. Austin might be the ideal choice, if only for the big weather factor.

Why aren't you disagreeing with the premise?

Businesses are free to locate themselves as they choose.

The fact that one doesn't like the result of market forces doesn't mean that the market is somehow wrong.