Post : DX, Artificial Scarcity and The List
URL : http://www.k0nr.com/wordpress/2016/0...cial-scarcity/
Posted : April 10, 2016 at 7:41 pm
Author : K0NR
Categories : DX, Ham Radio, HF

http://www.k0nr.com/wordpress/2016/0...l-scarcity/dx/ Economists
see scarcity, supply and demand as fundamental forces in a market. Items that
are scarce demand a higher price while items that are easy to obtain tend to
have a lower price.Â* A diamond is an example of something that is relatively
scarce (and in demand) so it commands a high price. In contrast, wood is
generally available and is much less expensive than diamonds.

Then there's the concept of artificial scarcity (
https://en.wikipedia.org/wiki/Artificial_scarcity ) . If some items can be
made scarce (or even just appear scarce), the price will tend to increase.
For example, if I own all of the banana trees on an isolated island, I could
reduce the available supply of bananas and command a higher price from all of
the banana eaters there. Or maybe I start screening bananas for quality and I
put a special sticker on them to brand them as special.

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