The Scarcity Effect is the cognitive bias that makes people place a higher value on an object that is scarce and a lower value on one that is available in abundance.

Scarcity is associated in our brains with something positive, luxurious and exclusive as we automatically assume that it is scarce because everyone wants or has already bought this product and therefore it must be a good product. In other words, scarce objects arouse our interests and so immediately become more desirable than a product that is readily available.

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