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Explain how artificial scarcity could exist in a free market
by ancap 11y ago
Explain how artificial scarcity could exist in a free market
- beambot 11y agoChanel captures the entire market for Chanel handbags. Their company entirely controls the supply, and they artificially limit the new supply fabricated each year. No other company can manufacture Chanel handbags. Hence: artificial scarcity. Many luxury good companies operate on this premise. Hence my original comment.
- ancap 11y agoYou are not describing a shortage as defined in economics. Re-read my previous comment. You are not even describing a monopoly because there are still alternative brands, even luxury brands, which people can buy. Otherwise any brand would be considered a monopoly. EDIT: used "scarcity" instead of "shortage"