The Scarcity Principle

When something is limited or appears to be, it instantly feels more valuable. Psychologist calls this the **scarcity principle.**

the less available something is, the more we desire it.

Things like unction pieces, concert tickets, limited fashion items, the unavailable person or even bitcoin. The fact that not everyone can get them makes people want them more.

Tell a child not to touch something and it’s like you’ve just given them a challenge, “I bet you can’t touch that.” Adults are not that different, when opportunities, love or freedom feels restricted, the desire to obtain it intensifies.

A perfect example for this is money. The value for money is tied to its scarcity, which explains why certain currencies cannot simply be printed in thier home countries and freely distributed. Because the moment that happens, it drops in its value.

Why are we so obsessed with the things we can’t have or the things that are not within our reach?
Once the word “rare” is tagged to something, people tend to loose their minds over it. And the competition to be on top is defined by owning the said “rare” item.
Overall, value is technically defined from limited availability.”

When things are scarce, it creates the illusion that the reason why they’re that way is because only the fittest can get them, which brings about competition. People want to be the first to have things, or one of the few people to get them and I’d say it’s more psychological and could be tied to the competitive nature of mankind.

The less available items makes us feel like champions when we acquire them, not because those items are always special but because of sentiments tied to being the owners of such items. In the minds of some, it differentiates them from their peers and makes them stand out.

I know many people who loose interest in things that are more readily available, because it takes away the joy and satisfaction of pursuit and acquistion. I for one might fall under that category. I find myself not wanting to wear certain clothes because I’ve seen it on a lot of people and seeing it on people doesn’t make me “feel special,” when I wear these clothes.

The business people understand this and use it for their businesses. They work on the psychology of their customers; when they want to make particular item more expensive, they make it scarce, and then they make you believe that being able to acquire that item makes you “stand out,” because you seek validation from buyers and peers, sometimes even from yourself, you buy such products.

Then again, ever heard of the saying;

When the desirable is unavailable, then the available becomes the desirable.

This statement seems to contradict the initial nuances of desirability being only tied to the less available options. It could be that they’re two kinds of people, those who are willing to compromise their desires for the available and those who are not willing to compromise, in other words, measuring their value in their ability to get the “rare” items.

Well, this is me openly picking my brain on this matter. Seeking to understand the scarcity principle is a valid quest and I wonder if you share in the same curiosity.

Why do you think people value the less available options rather than what is within their reach?