A note from Daniel

Scarcity can also perpetuate itself. When access to a resource has previously been severely limited, leading to high economic value, it creates strong incentives to maintain its scarcity, even if the resource actually becomes abundant. Take diamonds: for centuries, their supply was tightly controlled, making them expensive. Now we can grow flawless diamonds in labs, but the industry still works hard to preserve the perception of scarcity. They're not selling diamonds; they're selling the story.

Daniel The Great Mental Models, Volume 4, page 15 · December 4, 2024 Save to shelf
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