The Behavioral Economics in Marketing’s Podcast Scarcity | Definition Minute | Behavioral Economics in Marketing Podcast
Jan 29, 2023
A brief dive into the concept of scarcity and how limited resources shape choices. Real-world examples explore housing in crowded cities and shortages after disasters. The format delivers quick, focused definitions to clarify economic terms for marketers and decision makers.
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Scarcity Forces Trade-Offs
- Scarcity describes the gap between limited resources and limitless human wants, forcing choice.
- Its presence requires efficient allocation to satisfy basic needs and additional wants.
NYC Housing Example
- Sandra uses New York City housing as an example of scarcity in land and development.
- More people moving in reduces options and often raises rents and purchase prices.
Disasters Intensify Shortages
- Scarcity-driven shortages can occur anywhere and spike after natural disasters.
- Events like fires, hurricanes, and tornadoes create acute housing scarcity and price pressure.