Charity, proof scarcity doesn't always increase prices.
November 2, 2012 · Posted in abundance, economics, sharing · Comments Off on Charity, proof scarcity doesn't always increase prices.
Economic theory states that scarcity increases prices; but, exactly the opposite occurs. People share with their neighbors.
Widespread power outages is the definition of scarcity. The people people without electricity clearly have a need. Why didn’t it lead to massive profit taking? In a real free market there is another choice, it’s call charity.
The person sharing their electricity didn’t have a scarcity, they had an abundance, more than they needed. The value of helping people in need outweighed any monetary profit or the hassle involved in selling access to electricity. This situation shows that given the choice people gladly share. If there isn’t a significant cost involved sharing people will share.
Predictive Innovation Training
Predictive Innovation: Core Skills Book
RoundSquareTriangle.com