What cognitive bias primarily explains the increased perceived value of a product with limited availability?

Scarcity bias primarily explains the increased perceived value of a product with limited availability. Scarcity bias is a cognitive bias where people place a higher value on things that are rare or difficult to obtain. This happens because scarcity signals higher demand or exclusivity, making the item seem more desirable. When a product is advertised as having limited availability, whether due to time constraints or limited quantity, it triggers a sense of urgency and the fear of missing out (FOMO). For example, a limited-edition item marketed as 'only available for 24 hours' will likely see increased demand. This is because people fear losing the opportunity to own something that might not be available again. The perceived scarcity increases its desirability, even if the product itself isn't inherently more valuable. This bias taps into the psychological tendency to want what we can't easily have, thus inflating the perceived value.