thinking about scarcity anuj shah sendhil mullainathan eldar shafir sjdm 2014

Thinking about scarcity

Anuj ShahSendhil MullainathanEldar Shafir

SJDM 2014

Please don’t fall asleep.

bed

rest

tired

dream

wake

snooze

blanket

doze

slumber

awake

SLEEP

snore

nap

lady

male

strong

woman

beard

handsome

muscle

doze

father

uncle

MAN

person

son

The fabric of thoughts

bed

rest

tired

dream

wake

snooze

blanket

doze

slumber

awake

SLEEP

snore

nap

lady

male

strong

woman

beard

handsome

muscle

doze

father

uncle

MAN

person

son

Study 1: Seeing what isn’t there

pay

rent

cash

dollar

coin

utilities

grocery

gas

expense

loan

MONEY

bills

phonelady

male

strong

woman

beard

handsome

muscle

doze

father

uncle

MAN

person

son

Man Money0

0.05

0.1

0.15

0.2Low IncomeHigh Income

N = 125

Top of mind

When money is scarce…Many experiences trigger thoughts of money.

When money is introduced into an experience, it draws attention.

A clipart model of scarcity

$

A clipart model of scarcity

$

Old hat, new domain?

Aarts et al. (2001)Piech et al. (2010) Shyamalan (1999)

*SpoilerAlert

What’s on your mind?

Three questions

Do the poor spontaneously think about money?

Are these thoughts hard to suppress?

Do these thoughts interfere with how we enjoy experiences?

Study 2: A visit to the doctorImagine that you have been feeling sick lately and finally decide to go see a doctor about it…The doctor explains that you have a serious condition that requires immediate attention. The good news, however, is…you are virtually guaranteed to make a full recovery...The doctor writes several prescriptions…You will also need to make several appointments…

What would be on your mind or how would you feel as you hear this news… What are three things you would think about or feel?

“wife son coworker”“scared afraid worried”

“relief hope joy”

“cost family work”

Study 2: A visit to the doctor

Low Income High Income0

0.020.040.060.080.1

0.120.140.160.180.2

Proportion mentioning money-related thoughts

N = 198

Study 3: Distracted driving

Try not to think about how much you drive each month.

Try not to think about how much you spend on driving each month.

Study 3: Distracted driving

Driving Spending0

1

2

3

4

5

6

7

8

Low Income

High Income

# o

f in

tru

sio

ns

N = 568

Study 4: Hedonic interference

Study 4: Hedonic interference

Poor Rich1

2

3

4

5

6

7up front

paygo

En

joym

en

t

N = 297

Study 4b: Payment preference

Poor Rich0

0.1

0.2

0.3

0.4

0.5

0.6

0.7 Chart Title

Proportion preferring to pay as they go

N = 103

Study 4c: Payment preferenceImagine that you have booked a short cruise. As you read over

the materials for the cruise, you see that the trip will feature 10 meals, which are priced at $20 each, for a total of $200. How would you prefer to pay for the meals? You will definitely eat all 10 meals.

I would pay the $200 up front as soon as I get onto the cruise ship.I would pay $20 per meal at the end of each.

Low Income High Income0

0.050.1

0.150.2

0.250.3

0.350.4 Chart Title

N = 344

Where does this lead us?

Thoughts about money (or scarce resources) may be easily triggered and might interfere with everyday experiences.

Mani, Mullainathan, Shafir & Zhao (2013)

The fabric of thoughts

bed

rest

tired

dream

wake

snooze

blanket

doze

slumber

awake

SLEEP

snore

nap

lady

male

strong

woman

beard

handsome

muscle

doze

father

uncle

MAN

person

son