The Scarcity Effect

We want what we can’t have. The scarcity effect is a cognitive bias that influences people to place significant and higher value on an object that is unavailable or scarce compared to one that is abundant or readily accessible. We often see this impact consumer behavior - for instance, the selling out of a popular sneaker may render that style more desirable and drive up sales even further because it has suddenly become out of reach. This concept is easy to identify when we see or participate in it, but it does little to alter our course of behavior because our impulses are to continue to seek the unattainable. Our brains compute, “because many others have it and I don’t, it must be something that is both good and necessary”. Have you ever lusted over something and then when its in your hands, it suddenly loses it’s luminosity? This, my friends, is the scarcity effect.

What is less observable and often overlooked in the face of emotional distress is how the scarcity effect impacts our sense of life fulfillment. We spend time with people our age because of human nature, circumstances, and because we are often experiencing the same joys, stressors, challenges, and major life events at the same time. While this provides opportunity to relish in those moments together, it can also illuminate to us what we don’t have in comparison to our peers. The friend in the group without a significant other, the couple that is slower to start a family than the rest of the neighborhood, the recent grad that is less financially secure than their roommate from a different background; all scenarios that bring to light elements of our life that are missing that others may have. The inherent issue with the scarcity effect is while it urges us to seek out what is perceivably missing in comparison, it doesn’t take into account if the person actually wants these things outside of social influence, and completely devalues other aspects of the person’s life. For instance, the friend in the group without a significant other may have their good health, their family’s love and support, a stable career path, and ample supply of friends and resources. The couple without children may feel empty and behind, but are discounting their financial stability, current flexibility and freedom, and future anticipation of starting a family of their own. Another overlooked element of the scarcity effect is that while we see in others what we want, we forget that they also don’t have it all. The recent grad may look at their roommate and think “if only”, but doesn’t take into account that the roommate has a strained relationship with their parents and struggles with their mental health.

One way we can combat the scarcity effect is to bring out mind into awareness of those things that we do have and are thankful for. This may look like starting a gratitude journal or intentionally recognizing those aspects of our life that we otherwise take for granted. This exercise places less importance on what we desire and increases the significance of what we have. In turn, it lowers our emotional distress and increases our tolerance and defenses against the scarcity effect.