Question

Examples when a market may not be the best option to ration scarce resources? Be specific and include instances when market forces should step aside to other forces whether it be social, cultural, ethical, political, etc...Or do you think that a market can promote both efficiency and fairness?

Answer 1

INTRODUCTION:

The study on the distribution of available resources to society.The basic economic i ssue is how societies cope with the scarcity dilemma.
A process that determines how, when and who to do it.
Economic systems are ways of resource utilisation and distribution of output produced by those resources. This resource is inadequate to meet all of society's needs.

Nature resources (land), employees (work), technology and business ability are the four resources that must be allocated by

every economic system. Scarcity refers to a conflict that comes out of competition over limited resources of society.
When scarcity works ( when it doesn’t)
However, scarcity does not always work. This isn't a silver bullet.

Researchers demonstrated in four experiments, for example, that the influence of scarcity on product assessment is greater when:The outlook for persuasion is low;
Scarcity exposure is low frequency;Reversibility of judgement is high;High loading is cognitive.Basically, whether people are better informed or exposed to statements of
scarcity, a scarce commodity is less likely to be more expensive.This study found "the positive impact of the scarcity claims on product assessment would be diminished if customers viewed scarcity claims as a sales strategy."
To sum up, it will hurt more than assistance if the shortage is BS — and the customers are smart.

●Two forms of scarcity are usually available to boost sales:
The amount of scarcity (for example,
"Two seats left at this price!");
Scarcity of time (e.g., LAST DAY TO PURCHASE!!)

FOR EXAMPLE:
•Amazon.com

You shopped on Amazon, of course. And I am positive that you've noticed the alert of "only the X left in stock": this is an efficient way of getting me to behave and stop losing my eyes from the very rare book I've been looking at, in conjunction with the emergency shipping play "Want it tomorrow?"

•Bumble:
Bumble is a dating application which has always baked in a scarcity stage. Originally they had a one-day countdown. (Women had the time to speak to their player, or their player was gone.)
They've made even the playing field a further feature of scarcity. Now guys also have 24 hours to comment. Game on, game on.

Conclusion:
Scarcity is a strong theory, but it depends on efficiency, like everything. Do not use a fake shortage. If you have a high demand product and low availability, please show it. It just means expressing the facts of scarcities more simply than attempting to create them. And yes the market can promote both efficiency and fairness if the code of conduct and rules and regulations are followed in the same manner.