The Scarcity Principle

The idea of potential loss plays a large role in human decision making. In fact, the fear of losing something is a more powerful motivator than the prospect of gaining something of equal value. This is known as the scarcity principle.

The scarcity principle states that when something is perceived as scarce, it becomes more desirable. This is because we associate scarcity with value. If something is rare or difficult to obtain, we assume that it must be valuable.

This principle is often used by compliance professionals to get us to comply with their requests. For example, a salesperson might tell you that a product is in high demand and that there are only a few left in stock. This creates a sense of urgency and makes you more likely to buy the product.

The scarcity principle is a powerful tool of influence because it is based on a mental shortcut. We assume that if something is scarce, it must be good. This allows us to avoid having to think for ourselves. However, this can also be dangerous, as it can lead us to make decisions that are not in our best interest.