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Scarcity, in the area of social psychology, works much like scarcity in the area of economics. Scarcity is basically how people handle satisfying themselves regarding unlimited wants and needs with resources that are limited. [1] Humans place a higher value on an object that is scarce, and a lower value on those that are in abundance.
[1] Scarcity is the limited availability of a commodity, which may be in demand in the market or by the commons. Scarcity also includes an individual's lack of resources to buy commodities. [2] The opposite of scarcity is abundance. Scarcity plays a key role in economic theory, and it is essential for a "proper definition of economics itself". [3]
Murray Bookchin's 1971 essay collection Post-Scarcity Anarchism outlines an economy based on social ecology, libertarian municipalism, and an abundance of fundamental resources, arguing that post-industrial societies have the potential to be developed into post-scarcity societies. Such development would enable "the fulfillment of the social and ...
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Usually the effects of tunneling are dire, and result in long-term consequences. However, scarcity doesn't only produce negative effects: it can also lead to a focus dividend, a situation in which someone experiences an increase in productivity as a result of being so acutely focused on a single pursuit. Thus, scarcity has both positive and ...
The term "hoarding" may include the practice of obtaining and holding resources to create artificial scarcity, thus reducing the supply, thereby increasing the price, so that resource can be sold for profit. Artificial scarcity may also be used to help corner a market, by reducing competition via the creation of a barrier to entry.