For a long time, universities worked off a simple idea: knowledge was scarce. You paid for tuition, showed up to lectures, completed assignments and eventually earned a credential.
That process did two things: it gave you access to knowledge that was hard to find elsewhere, and it signalled to employers you had invested time and effort to master that knowledge.
The model worked because the supply curve for high-quality information sat far to the left, meaning knowledge was scarce and the price – tuition and wage premiums – stayed high.
