How does Scarcity trigger FOMO?

Scarcity effectively triggers the fear of missing out (FOMO) due to several interconnected psychological principles. As explained by Robert Cialdini during his discussion with Shane Parrish, the scarcity of a product or opportunity elevates its perceived value, making it seem more desirable simply because it is less available. This can lead to FOMO, a widespread modern anxiety where individuals fear being left out from experiencing or obtaining something deemed important by their social group or themselves.

Moreover, Cialdini notes the concept of loss aversion, introduced by Nobel laureate Daniel Kahneman. People are often more impacted by the thought of losing something than by the thought of gaining something of equal value. So when a product or opportunity is scarce, the potential "loss" feels more significant, thereby triggering FOMO more effectively. This could be further stoked by marketing strategies emphasizing what one might miss rather than just what could be gained, enhancing the fear of missing out through psychological pressure to act quickly to avoid losing out 1.