A false shortage is a form of artificial scarcity induced by a supplier, often with the intent to elevate consumer demand above levels that may otherwise be achieved in the absence of such scarcity.
Companies may induce a false shortage to give rise to a common perception of the rarity or uniqueness of a product or service, when they are, in reality, neither precious, nor difficult to produce.
Suppliers often stand to gain from a false shortage, because it can help increase consumer demand without a corresponding decrease in price, and hence an entity's perceived value. This results in an increase in short-term profit.