Walking into any store or entering an online shop, you will probably see the words like “Limited Edition”. Even if you haven’t thought of buying things, those phrases often make you stop and take a closer look. Those products suddenly would look more valuable, special, and harder to ignore. This reaction isn’t accidental. It happens because of the scarcity effect.
According to Rob Vujakija, “[t]he scarcity effect is the cognitive bias that leads people to place a higher value on things that are perceived as rare or in limited supply”. When things appear less available, then it becomes more wanted. This is because our brain changes the evaluation of things. By labeling products as limited, companies make customers feel that they must buy those before they disappear. This strategy is powerful enough to make people buy things that they do not actually need.
People naturally desire things that are hard to have. When a product is only available for a limited time or in small quantities, it feels more important. This is connected to our fear of missing out, called loss aversion. Jairene Cruz-Eusebio states that “[l]loss aversion is the psychological term for the reluctance to give up benefits due to potential risks”. In other words, the fear of losing an opportunity feels stronger than the satisfaction of saving money or waiting for it. Scarcity and loss aversion work together to make limited edition products even more tempting. This fear often appears as FOMO, the fear of missing out. FOMO makes people make decisions faster without having a careful thinking process. Instead of asking whether they really need the product, they focus on what will happen if they do not buy it. For example, a limited-edition sneaker or a special drink flavor may not be very different from the original version.
However, because it is harder to get, people feel pressure to buy it immediately. This is why many limited items are bought right away on impulse, with buyers later trying to justify their decision. Limited editions also make people think products are special. Owning something rare can create uniqueness and importance. Owning something rare can create a feeling of uniqueness and importance. For younger generations especially, products are a way to express their identity.
Having limited items can appear trendy and cool or belonging to a certain group. Brands are aware of this, which is why they often release special collaborations with popular artists, influencers, characters, or other brands. These products turn into symbols of who they are and what they stand for. Another reason for the concept of scarcity to work is that people often believe items that are hard to get must be high quality. This becomes a shortcut for judging value. While this saves time, it is not always accurate. Companies gain more profit from this by limiting supply even when they could produce more. To them, looking rare than their product is, matters.
However, the scarcity effect is not always positive. Buying things people do not actually need can lead to regret and money worries. Constantly exposed to limited edition marketing can also turn shopping into a stressful experience instead of a fun action. What started as a feeling of excitement can slowly become anxiety.
Understanding the psychology behind limited editions helps consumers make smarter choices. Next time, if you see a countdown timer or a “last minute” sign, always pause and ask yourself one question: do I really want this product, or do I just not want to miss out?
Recognizing scarcity does not mean avoiding all limited items, but it does mean taking back control. In a world where everything is moving at a rapid pace, slowing down may be the wisest decision.
By. Heeseo Kim
Works Cited
Cruz-Eusebio, Jairene. “Using the Theory of Loss Aversion in Marketing To Gain More Customers.” Brax.io, 9 Feb. 2022
Vujaklija, Rob. “The Scarcity Effect: How Limited Offers Activate the Brain’s Urgency Signals.” Braintrust Growth, 23 June 2025