Being unfamiliar with the formal principle called the "law of scarcity," I have paused for an inadvertent education on the matter. My initial supposition was that with a fixed limit of product, demand which is at least equal to that product will "order the queue" of demand by means of price. One does not need to posit "unlimited" demand; rather, demand in excess of supply will suffice.
But I also learn that the price can be manipulated by threatening one's rights or property; or the alternative, offering an unearned windfall. People will not demand something as much as when they are persuaded that it is "theirs." Also, people who are persuaded that they have stumbled upon a treasure, will pursue it more ardently than if it were just offered in the marketplace without persuasion.
The "Marketing Minute" blog by a Chip Cummings offers:
If heathcare is perceived as a fundamental right, than people will ardently pursue its fulfillment. To some degree, they are correct in doing so, because the ultimate measure of fundamental rights derives from the rational basis of the individual. Unfortunately, the "rational" part has left by the roadside in this approach.
Canute has a bad rap these days. I read in Wikpedia the following:
Unlike modern rulers, he got the point on the first try. He's head-and-shoulders a better empiricist (and thus, economist) thank the DC Boys these days.
But I also learn that the price can be manipulated by threatening one's rights or property; or the alternative, offering an unearned windfall. People will not demand something as much as when they are persuaded that it is "theirs." Also, people who are persuaded that they have stumbled upon a treasure, will pursue it more ardently than if it were just offered in the marketplace without persuasion.
The "Marketing Minute" blog by a Chip Cummings offers:
Can you create a sense of urgency in your marketplace? Limited access to a conference call; only $1.2 million in this particular loan program available; offers only accepted for 7 days; only 38 people allowed access; 10% discount only for the next 72 hours…..
You get the idea - use Scarcity to get your market to act quickly. This works well with customer retention strategies, initial prospects, and special events. There are a couple of rules:
- Be sure to FOLLOW THROUGH on your promise! A limit is a limit. By holding your ground, they will respond accordingly NEXT time.
- Set clear guidelines and expectations. Be sure to TELL the prospect EXACTLY what to do!
If heathcare is perceived as a fundamental right, than people will ardently pursue its fulfillment. To some degree, they are correct in doing so, because the ultimate measure of fundamental rights derives from the rational basis of the individual. Unfortunately, the "rational" part has left by the roadside in this approach.
Canute has a bad rap these days. I read in Wikpedia the following:
Henry of Huntingdon, the 12th-century chronicler, tells how Cnut set his throne by the sea shore and commanded the tide to halt and not wet his feet and robes; but the tide failed to stop. According to Henry, Cnut leapt backwards and said "Let all men know how empty and worthless is the power of kings, for there is none worthy of the name, but He whom heaven, earth, and sea obey by eternal laws." He then hung his gold crown on a crucifix, and never wore it again.
Unlike modern rulers, he got the point on the first try. He's head-and-shoulders a better empiricist (and thus, economist) thank the DC Boys these days.
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