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Well, I guess if the business model were to not make a significant amount of money then no scarcity would be perfect! But really, scarcity (real or "fake") nee

Well, I guess if the business model were to not make a significant amount of money then no scarcity would be perfect! But really, scarcity (real or "fake") needs to exist or else I would be wasting time creating a PRODUCT (in other words: something that is sold).

ph0rque 18y ago
> scarcity (real or "fake") needs to exist or else I would be wasting time creating a PRODUCT (in other words: something that is sold). Not true: see 37signals, for example.
- invisible 18y ago
  I think you misunderstand what artificial scarcity means (or I do somehow). 37signals is proof that artificial scarcity must exist in some form to profit. Adding a price to something creates a form of artificial scarcity. From my perspective, you just agreed with me.
  - thwarted 18y ago
    Artificial scarcity is trying to limit access to something which can not be limited. Once bits, for any purpose, are put in the right order to do something or represent something, the cost to replicate those bits to other parties is zero. In contrast with an automobile, even after it is designed, significant infrastructure (currently) needs to be built and exist to create another one. What you are paying for when you purchase a car is the PROCESS that went into creating JUST that ONE car you bought. Additional cars would not exist if the infrastructure didn't exist to create more of them (and then economies of scale come into play, making the car actually affordable). Bits do not have that limitation. Scarcity and want must exist in order to set a legitimate price. Artificial scarcity sets a price on something that isn't actually scarce. It is a (unfortunate?) side-effect of the market that potential buyers think that because something has a price, it must be worth having (ie scarce). I don't think there's actually anything wrong with basing a business on this, but don't be surprised when your customers realize you've been selling them something that should have a price closer to zero because there is infinite supply.
thwarted 18y ago
The real scarcity is your time and reputation, which in the right combination can command a significant amount of money. Attempting to limit what can not be limited is creating scarcity where there is none, and it is only a matter of time until someone breaks your business model by figuring out that you've been attempting to control the uncontrollable. And that'll happen just at the point when you're dependent on it and unable to change. For a case study, see the RIAA.

ph0rque 18y ago

> scarcity (real or "fake") needs to exist or else I would be wasting time creating a PRODUCT (in other words: something that is sold). Not true: see 37signals, for example.

invisible 18y ago
I think you misunderstand what artificial scarcity means (or I do somehow). 37signals is proof that artificial scarcity must exist in some form to profit. Adding a price to something creates a form of artificial scarcity. From my perspective, you just agreed with me.
- thwarted 18y ago
  Artificial scarcity is trying to limit access to something which can not be limited. Once bits, for any purpose, are put in the right order to do something or represent something, the cost to replicate those bits to other parties is zero. In contrast with an automobile, even after it is designed, significant infrastructure (currently) needs to be built and exist to create another one. What you are paying for when you purchase a car is the PROCESS that went into creating JUST that ONE car you bought. Additional cars would not exist if the infrastructure didn't exist to create more of them (and then economies of scale come into play, making the car actually affordable). Bits do not have that limitation. Scarcity and want must exist in order to set a legitimate price. Artificial scarcity sets a price on something that isn't actually scarce. It is a (unfortunate?) side-effect of the market that potential buyers think that because something has a price, it must be worth having (ie scarce). I don't think there's actually anything wrong with basing a business on this, but don't be surprised when your customers realize you've been selling them something that should have a price closer to zero because there is infinite supply.

thwarted 18y ago

The real scarcity is your time and reputation, which in the right combination can command a significant amount of money. Attempting to limit what can not be limited is creating scarcity where there is none, and it is only a matter of time until someone breaks your business model by figuring out that you've been attempting to control the uncontrollable. And that'll happen just at the point when you're dependent on it and unable to change. For a case study, see the RIAA.