Ask an Economist
Question:
Can artificial scarcity be considered a nudge under nudge theory (from readings it sounds like nudges should be transparent if so, can I call it a non-transparent nudge?
Answer:
Thaler and Sunstein in their book define nudge as “any aspect of the choice architecture that alters people's behavior in a predictable way without forbidding any options or significantly changing their economic incentives.”
By that definition artificial scarcity cannot be considered a nudge. Generally speaking, artificial scarcity leads to an increase in prices and hence it alters people’s economic incentives. Nudges do not alter economic incentives of the people.
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