A characterization of an asset or set of assets that are used to serve a narrow purpose. Asset specificity applies to assets (broadly, capital) designed to operate in a unique way or to function and serve a unique or specific purpose. Therefore, it such an asset has limited uses because of certain inherent restrictions on other uses.

Asset specificity negatively correlates with its redeployability. The more specific an asset, the lower its resale value and vice versa. Assets with a high degree of specificity are considered a sunk cost for the purchasing entity, as it will have a very limited resale value or a very low use value for purposes other than its initial design.

Broadly speaking, asset specificity refers to the degree to which an asset (physical, human, or informational) can be readily and flexibly transferred or redeployed across different uses or places.