Artificial scarcity is the scarcity of items that exists even though either the technology for production or the sharing capacity exists to create a theoretically limitless or at least greater quantity of production than currently exists.
Artificial scarcity is the scarcity of items that exists even though either the technology for production or the sharing capacity exists to create a theoretically limitless or at least greater quantity of production than currently exists. The most common causes are monopoly pricing structures, such as those enabled by laws that restrict competition or by high fixed costs in a particular marketplace. The inefficiency associated with artificial scarcity is formally known as a deadweight loss.
