Mariyam Ismailova | 12.02.2026
The Economics of FOMO or Why We Buy Things We Don’t Need
FOMO, or fear of missing out is not just a catchphrase. It's a psychological condition in which people worry about missing out on important events or opportunities. Social media, where people share their highlights from their lives, often worsens this fear. People might feel like they are missing out if they see their friends hanging out, buying new things, and living certain lifestyles. Because of this people may spend more money impulsively, not because they need it, but rather because they want to feel included.
Some studies show that FOMO has a significant impact on impulsive purchasing, causing people to buy things that were never within their means. Marketing tactics that use flash discounts, countdown timers, ‘limited stock’ warnings, or popular social media ads can generate a sense of urgency. These strategies makes consumers feel like they will miss out on a great opportunity if they don’t purchase immediately. Furthermore, there is pressure dorm social media, which allows consumers to see what others are buying, thus creating feelings of FOMO. As a result, consumers end up buying things they don't really need, not because they benefit from these things, but so they can feel included, and less anxious.
E-commerce websites and social media platforms are designed to purposefully trigger FOMO among users and turn their online browsing into purchases. The algorithms on these platforms monitor users’ interests and load their feeds with peer purchases, viral products, and personalized ads that make things appear ‘necessary’. The combination of entertainment and ‘in the moment’ purchasing through influencer content on social media platforms creates a sense of experiencing a special event among users. Research on e-commerce customers show that offers such as free shipping and discounts have. A great impact on increasing consumer spending, and along with that, FOMO is one of the most defining factors of consumer behaviour. As a result, the entire experience of purchasing becomes an emotional reaction to digital stimuli rather than a rational financial decision.
Economic psychology explains how FOMO affects purchasing decisions. One of the important concepts is scarcity bias, or the tendency in favour of valuing highly those things that are appearing limited. Even though a product’s usefulness hasn’t altered, buyers find it more appealing when they see low stock warnings, exclusive items or time limited discounts. This impact is reinforced by social proof, if other people are rushing to buy, it appears that the object is more valuable. Loss aversion is another crucial concept, where people are more afraid of losses than they are of rewards. The concept of saving money is not as emotionally satisfying as missing a chance. Because of this, people tend to buy things quickly in order to prevent missing them out. Together, these biases cause judgements to change from logical budgeting to emotionally dependent responses.
In the digital age, when people display their life, purchases and experiences on social media, FOMO has emerged as a defining force in consumer society. Influencer hauls, unboxing, and travel content on platforms like YouTube, Snapchat, Instagram, and TikTok, which serve as virtual showrooms blur the line between entertainment and ads. Algorithms further propel this along by making viral products feel culturally necessary. Therefore, missing out on a limited-edition good, a sale, or a product launch can feel more like missing an event rather than a simple purchase. This psychology is actively used in the construction of strategies by brands. Whereas influencer collaborations attach items to aspirational identities, limited editions, waitlists, and countdowns create a feeling of urgency. An obvious example, the Labubu doll trend, which turned a niche toy into a global buying frenzy because of blind box packaging, limited editions, and social media hype. This example reveals the hidden consequences of FOMO driven consumerism, which grows engagement and sales but encourages overspending, anxiety, and environmentally damaging consumption.
However, before making a purchase, it is important to take a step back and consider the real factors influencing the decision. You can stop yourself by asking straightforward questions like “Do I really need this?” or “Am I buying because I want it, or because I feel pressured?” Consumers may break free from their emotional states and enter a logical frame of thought through the identification of the real causes of their buying behaviour. For instance, the psychological base of FOMO will permit individuals to limit their expenditure and spending through the creation of budgets. Therefore, it is redefining the definition of consumption as a conscious decision rather than a reaction triggered by fear.
Sources:
https://en.wikipedia.org/wiki/Fear_of_missing_out
https://international.areai.or.id/index.php/IJEMS/article/view/373?
https://www.sciencedirect.com/science/article/abs/pii/S096969892300259X?
https://www.moneytimes.ru/articles/digital-consumer-psychology-5dl/119673/
https://en.wikipedia.org/wiki/Scarcity_(social_psychology)
https://www.oneyoungindia.com/cuet-and-upsc-general-studies-notes/how-fomo-drives-modern-consumerism?
Some studies show that FOMO has a significant impact on impulsive purchasing, causing people to buy things that were never within their means. Marketing tactics that use flash discounts, countdown timers, ‘limited stock’ warnings, or popular social media ads can generate a sense of urgency. These strategies makes consumers feel like they will miss out on a great opportunity if they don’t purchase immediately. Furthermore, there is pressure dorm social media, which allows consumers to see what others are buying, thus creating feelings of FOMO. As a result, consumers end up buying things they don't really need, not because they benefit from these things, but so they can feel included, and less anxious.
E-commerce websites and social media platforms are designed to purposefully trigger FOMO among users and turn their online browsing into purchases. The algorithms on these platforms monitor users’ interests and load their feeds with peer purchases, viral products, and personalized ads that make things appear ‘necessary’. The combination of entertainment and ‘in the moment’ purchasing through influencer content on social media platforms creates a sense of experiencing a special event among users. Research on e-commerce customers show that offers such as free shipping and discounts have. A great impact on increasing consumer spending, and along with that, FOMO is one of the most defining factors of consumer behaviour. As a result, the entire experience of purchasing becomes an emotional reaction to digital stimuli rather than a rational financial decision.
Economic psychology explains how FOMO affects purchasing decisions. One of the important concepts is scarcity bias, or the tendency in favour of valuing highly those things that are appearing limited. Even though a product’s usefulness hasn’t altered, buyers find it more appealing when they see low stock warnings, exclusive items or time limited discounts. This impact is reinforced by social proof, if other people are rushing to buy, it appears that the object is more valuable. Loss aversion is another crucial concept, where people are more afraid of losses than they are of rewards. The concept of saving money is not as emotionally satisfying as missing a chance. Because of this, people tend to buy things quickly in order to prevent missing them out. Together, these biases cause judgements to change from logical budgeting to emotionally dependent responses.
In the digital age, when people display their life, purchases and experiences on social media, FOMO has emerged as a defining force in consumer society. Influencer hauls, unboxing, and travel content on platforms like YouTube, Snapchat, Instagram, and TikTok, which serve as virtual showrooms blur the line between entertainment and ads. Algorithms further propel this along by making viral products feel culturally necessary. Therefore, missing out on a limited-edition good, a sale, or a product launch can feel more like missing an event rather than a simple purchase. This psychology is actively used in the construction of strategies by brands. Whereas influencer collaborations attach items to aspirational identities, limited editions, waitlists, and countdowns create a feeling of urgency. An obvious example, the Labubu doll trend, which turned a niche toy into a global buying frenzy because of blind box packaging, limited editions, and social media hype. This example reveals the hidden consequences of FOMO driven consumerism, which grows engagement and sales but encourages overspending, anxiety, and environmentally damaging consumption.
However, before making a purchase, it is important to take a step back and consider the real factors influencing the decision. You can stop yourself by asking straightforward questions like “Do I really need this?” or “Am I buying because I want it, or because I feel pressured?” Consumers may break free from their emotional states and enter a logical frame of thought through the identification of the real causes of their buying behaviour. For instance, the psychological base of FOMO will permit individuals to limit their expenditure and spending through the creation of budgets. Therefore, it is redefining the definition of consumption as a conscious decision rather than a reaction triggered by fear.
Sources:
https://en.wikipedia.org/wiki/Fear_of_missing_out
https://international.areai.or.id/index.php/IJEMS/article/view/373?
https://www.sciencedirect.com/science/article/abs/pii/S096969892300259X?
https://www.moneytimes.ru/articles/digital-consumer-psychology-5dl/119673/
https://en.wikipedia.org/wiki/Scarcity_(social_psychology)
https://www.oneyoungindia.com/cuet-and-upsc-general-studies-notes/how-fomo-drives-modern-consumerism?
