Difference between revisions of "Artificial scarcity"
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'''Artificial scarcity''' describes the [[scarcity]] of items even though the technology and [[Economic production|production]] capacity exists to create an abundance. The term is aptly applied to non-rival resources, i.e. those that do not diminish due to one person's use, although there are other resources which could be categorized as artificially scarce. The most common causes are [[monopoly]] pricing structures, such as those enabled by [[intellectual property]] rights or by high [[fixed costs]] in a particular marketplace. The inefficiency associated with artificial scarcity is formally known as a [[deadweight loss]]. | '''Artificial scarcity''' describes the [[scarcity]] of items even though the technology and [[Economic production|production]] capacity exists to create an abundance. The term is aptly applied to non-rival resources, i.e. those that do not diminish due to one person's use, although there are other resources which could be categorized as artificially scarce. The most common causes are [[monopoly]] pricing structures, such as those enabled by [[intellectual property]] rights or by high [[fixed costs]] in a particular marketplace. The inefficiency associated with artificial scarcity is formally known as a [[deadweight loss]]. | ||
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| + | == Criticism == | ||
| + | One critic has stated artificial scarcity cannot exist. "Scarcity cannot be created, it can only be enhanced."<ref>Article via H+ Magazine retrieved 30th August 2013, http://hplusmagazine.com/2013/04/09/governments-money-capitalism-scarcity-and-stupidity/ - archived here: http://archive.is/i1mmG</ref> | ||
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== See also == | == See also == | ||
Revision as of 06:19, 30 August 2013
- ↑ Article via H+ Magazine retrieved 30th August 2013, http://hplusmagazine.com/2013/04/09/governments-money-capitalism-scarcity-and-stupidity/ - archived here: http://archive.is/i1mmG