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:
“When I hear the hypercritical quarreling about grammar and style, the position of the particles, etc., etc., stretching or contracting every speaker to certain rules of theirs ... I see that they forget that the first requisite and rule is that expression shall be vital and natural, as much as the voice of a brute or an interjection: first of all, mother tongue; and last of all, artificial or father tongue. Essentially your truest poetic sentence is as free and lawless as a lamb’s bleat.”
—Henry David Thoreau (1817–1862)