Squeeze-In Effect
The phrase squeeze-in effect or “ingression effect” can be used to describe a particular process or phenomenon that occurs in a particular event or situation. This process or phenomenon is characterized by an increase in the demand for resources, goods, or services beyond the available supply. That then causes a competition or “squeeze” between the demanders and the suppliers. This competition can lead to a number of different effects such as increased cost, delays in delivery, and unsatisfied demands.
The squeeze-in effect was first observed and described by the economist Alfred Marshall in the 19th century. Marshall observed that when the demand for certain goods or services exceeded the available supply, there would be a corresponding increase in the price for that particular product or service. This phenomenon has since been explained further by other economists.
One example of the squeeze-in effect is what we see in the stock markets. When there is an unusually large demand for certain stocks, the price of those stocks will increase as well due to the lack of available shares. This increase in price is usually short lived as the demand usually decreases within a short period of time.
The squeeze-in effect can also be seen in many other fields such as agriculture, retail, and housing. In agriculture, when demand for certain crops outstrips supply, the price will increase in an effort to make up for the difference. In retail, shortages of certain products can lead to stores and online vendors offering those products at a significantly higher price than normal. And in housing, when there is a large influx of buyers and a shortage of available homes, the price of existing homes will increase as buyers try to outbid each other for the same house.
The squeeze-in effect can result in both positives and negatives for the parties involved. For the demanders, the positives include the ability to quickly obtain the goods or services that are in short supply, as well as the increased profits that come from paying a higher price. The negatives include paying higher prices than normal, and in some cases, delays in getting the goods or services due to increased demand. For the suppliers, the positives include increased profit margins, as well as the ability to meet the high demand. The negatives include the possibility of lower customer satisfaction due to prolonged fulfillment times, fluctuating prices, and an inability to guarantee delivery.
In conclusion, the squeeze-in effect is a phenomenon that can be observed in a variety of different scenarios, both in the stock market and other areas such as agriculture, retail, and housing. It can be beneficial to both demanders and suppliers, although it can also have negative consequences such as increased costs, delayed delivery times, and customer dissatisfaction.
