[kenjackson]

That's the whole point. The value of the degree is the inverse of its scarcity. If you have 50% of people with degrees, it's more useful than if you have 80%, which is more useful than if you have 95%.

The value of the degree, to you, trying to whittle down applicants, is inversely related to scarcity. But not to the degree holders. In fact, as the scarcity decreases, the cost of not having the degree may increase.

There's effectively two states: (1) Have the degree (2) Don't have the degree.

In a world where the degree is scarce having the degree may provide more value over the average person (although if it is too scarce, the value may actually diminish, as it may also hinder its credibility or recognition). But at the same time, not having the degree doesn't reduce your value as much versus the average person (since its rare, no one notices its absence).

When the degree is common, the opposite is the case.

What I'm trying to say is that scarcity matters to you in a very isolated activity (whittling down applicants). Outside of that, the role of scarcity plays both sides of the fence.

[raganwald]

That's really interesting, thanks!