archiveartificial scarcity

Maximum Profit Margins
Profit Margins

The Scarcity Effect: Leveraging Exclusivity for Maximum Profit Margins

What is the Scarcity Effect? A psychological and economic principle that drives demand through perceived limitations of availability. Scarcity makes products more desirable, triggering urgency and increasing perceived value. Why Scarcity Works: The Psychological Mechanism Loss aversion: Fear of missing out (FOMO) pushes consumers to act impulsively. Cognitive biases such...