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