The Scarcity Heuristic

Heuristic- Scarcity Heuristic

Definition- When something is scarce we tend to think of it as more valuable.

Example- Perhaps nothing explains this better than the Beanie Baby craze of the 90’s. Let’s just say I have several tubs of these “valuable” commodities up in my attic. I remember my daughter daily calling the local gift shop in town checking to see if they had received any more inventory. I also remember spending quite a bit of money on the rare Princess Diana Bear. 

How Can This Work Against Us- I remember in my mid-twenties just about the time Princess Diana was marrying her Prince Charming, that I found myself interested in a guy who normally would not have been my type. As I think back on it now, the pickings were slim in my suburban community for singles, and his value definitely increased due to him being male, single, and pushing thirty. (Marrying age you know) Luckily, he didn’t turn out to be my Prince Charming.

How To Be More Aware Next Time- Just like Beanie Babies and boyfriends, it doesn’t hurt to step back for a moment, and evaluate the situation. Just because something is rare at the moment doesn’t mean it’s best in the long run. Don’t allow the scarcity of something to foolishly up the ante.

Recount a Time You Used This Heuristic- Several years ago one of my favorite things to do was to look for “treasures” at garage sales and thrift stores. Since these items were generally one of a kind, and not easily found their value increased exponentially in my eyes. Add in a rock bottom price, and you had me sold. What did T. Barnum Bailey say? “A sucker is born every moment.” What I ended up with was a houseful of Knick-knacks that eventually found their way back to Goodwill. 

Plan For What To Do Next Time- instead of rushing in as “fools” seem to do, again take a minute to consider if that rare, valuable item is really something you really want? By the way if anyone collects Fenton Glass I’ve got a blue vase looking for a new home. I just couldn’t resist.