Difference between revisions of "Artificial scarcity"
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With computer software, no significant trade-off occurs. To produce more of a certain piece of digital information, since virtually no resources are used to copy the information there is no trade-off with the production of other things, like shoes and boots. In essence, problems of artificial scarcity usually arise when a good that was once scarce becomes abundant due to extreme increases in productivity and technology. <ref>[http://www.automation.com/sitepages/pid1698.php The Problems of Scarcity & Abundance]</ref> | With computer software, no significant trade-off occurs. To produce more of a certain piece of digital information, since virtually no resources are used to copy the information there is no trade-off with the production of other things, like shoes and boots. In essence, problems of artificial scarcity usually arise when a good that was once scarce becomes abundant due to extreme increases in productivity and technology. <ref>[http://www.automation.com/sitepages/pid1698.php The Problems of Scarcity & Abundance]</ref> | ||
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+ | {{quote|If you have an apple and I have an apple and we exchange apples then you and I will still each have one apple. But if you have an idea and I have an idea and we exchange these ideas, then each of us will have two ideas.|George Bernard Shaw}} | ||
== Support for artificial scarcity == | == Support for artificial scarcity == | ||
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== Responses to artificial scarcity == | == Responses to artificial scarcity == | ||
− | In the absence of artificial scarcity, businesses and individuals would create tools based on their own need (demand). For example, if a business had a strong need for a voice recognition program, they would pay to have the program developed to suit their needs. The business would profit not on the program, but | + | In the absence of artificial scarcity, businesses and individuals would create tools based on their own need (demand). For example, if a business had a strong need for a voice recognition program, they would pay to have the program developed to suit their needs. The business would profit not on the program, but on the resulting boost in efficiency caused by the program. The subsequent abundance of the program would lower operating costs for the developer as well as other businesses using the new program. Lower costs for businesses result in lower prices in the competitive free market. Lower prices from suppliers would also raise profits for the original developer. In abundance, businesses would continue to pay to improve the program to best suit their own needs, and increase profits. Over time, the original business makes a return on investment, and the final consumer has access to a program that suits their needs better than any one program developer can predict. This is the common rationale behind [[open-source]] software, such as [[Mozilla Firefox]]. |
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== See also == | == See also == | ||
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*[[Scarcity]] | *[[Scarcity]] | ||
*[[Post scarcity]] | *[[Post scarcity]] | ||
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==References== | ==References== | ||
<references/> | <references/> | ||
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[[Category:Scarcity]] | [[Category:Scarcity]] | ||