Artificial scarcity describes the scarcity of items even though the technology and production capacity exists to create an abundance. The term is aptly applied to non-rival resources, i.e. those that do not diminish due to one person's use, although there are other resources which could be categorized as artificially scarce. The most common causes are monopoly pricing structures, such as those enabled by intellectual property rights or by high fixed costs in a particular marketplace. The inefficiency associated with artificial scarcity is formally known as a deadweight loss.
With computer software, no significant trade-off occurs. To produce more of a certain piece of digital information, since virtually no resources are used to copy the information there is no trade-off with the production of other things, like shoes and boots.
If you have an apple and I have an apple and we exchange apples then you and I will still each have one apple. But if you have an idea and I have an idea and we exchange these ideas, then each of us will have two ideas. —Phi Kappa Phi JournalFamous quotes containing the word artificial:
“Description is revelation. It is not
The thing described, nor false facsimile.
It is an artificial thing that exists,
In its own seeming, plainly visible,
Yet not too closely the double of our lives,
Intenser than any actual life could be....”
—Wallace Stevens (1879–1955)