Scarcity, in the area of social psychology, works much like scarcity in the area of economics. Scarcity is basically how people handle satisfying themselves regarding unlimited wants and needs with resources that are limited. Humans place a higher value on an object that is scarce, and a lower value on those that are in abundance. For example diamonds are more valuable than rocks because diamonds are not as abundant. These perceptions of scarcity can lead to irregular consumer behavior, such as systemic errors or cognitive bias. There are two social psychology principles that work with scarcity that increase its powerful force. One is social proof. This is a contributing factor to the effectiveness of scarcity, because if a product is sold out, or inventory is extremely low, humans interpret that to mean the product must be good since everyone else appears to be buying it. The second contributing principle to scarcity is commitment. If someone has already committed themselves to something, then find out they cannot have it, it makes the person want the item more. Although people usually think of scarcity in a physical manner, it is important to note that the 'product' in short supply can also be abstract ideas such as time or energy. Examples This idea is deeply embedded in the intensely popular “Black Friday” shopping extravaganza that many United States consumers participate in every year on the day after Thanksgiving. More than getting a bargain on a great gift, shoppers thrive on the competition itself, which is obtaining the scarce product. Another example of the effects of scarcity is the phenomenon of panic buying, which drives people to display hoarding behaviors when faced with the possibility of going without a certain product. Historically, panic buying was seen during the COVID-19 pandemic in 2020. Due to the pandemic, people panic bought toilet paper out of fear of limited product supply, creating a shortage. Effects of scarcity in humans Scarcity of resources can create frustration due to the inability to obtain the coveted item. Hoarding Scarcity is also considered by some to encourage hoarding behavior. Researchers have found that when consumers are faced with perceived scarcity, they may become overwhelmed by the fear of needing an item and not having it. This can lead to unnecessary buying and hoarding of items that are already in short supply. This in turn creates a cycle of scarcity in which