Scarcity economics refers to the fundamental issue of scarcity, the gap between limited resources and theoretically limitless wants. Essentially, scarcity arises because goods and services exist in a limited supply or limited timeframe.
Why is scarcity economics important?
Surfacing the “availability” of your products and services taps directly into the principles of scarcity economics. By designing personalization tactics that place products in the context of their relative “availability” you can influence the perceived ability of your customers to satisfy their wants and needs.
How does Qubit use scarcity economics?
Qubit's social proof can be used to surface information about the number of items left in stock or how fast a product or service is selling. This solution takes advantage of the phenomenon of the Fear of Missing Out (FOMO) to reinforce scarcity and influence purchasing decisions.