Scarcity: Why Having Too Little Means So Much

Scarcity is co-authored by Sendhil Mullainathan and Eldar Shafir. Their combined expertise in economics, psychology, and behavioral science makes them particularly well-suited to explore and illuminate the complex effects of scarcity on human behavior and decision-making.

Sendhil Mullainathan is a professor of computation and behavioral science at the University of Chicago Booth School of Business. He received his bachelor of arts in computer science, mathematics, and economics from Cornell University and his PhD in economics from Harvard University. Mullainathan is a recipient of a MacArthur Foundation “genius grant,” recognizing his work in behavioral economics and its application to social problems. His research interests span a wide range of topics, including development economics, corporate finance, and the role of psychology in economic behavior. Before joining the University of Chicago, he was a professor of economics at Harvard University and has worked with numerous organizations to apply behavioral economic principles to alleviate poverty and improve public policy effectiveness.

Mullainathan’s contributions to the field of behavioral economics are characterized by an application of psychological insights to understand economic behaviors in real-world contexts. His work has consistently sought to uncover the hidden factors that influence decision-making, particularly in the context of poverty and economic development. Mullainathan’s involvement in various practical applications of his research, including work in developing countries to improve financial decision-making among the poor, provides a solid foundation for the empirical observations shared in Scarcity. Through his teaching and research, Mullainathan has explored themes that are central to Scarcity, such as the cognitive load imposed by financial stress and how this can lead to counterproductive behaviors.

Eldar Shafir is a professor of psychology and public affairs at Princeton University, where he has significantly contributed to the fields of cognitive science and behavioral economics. He earned his bachelor of arts from Brown University and his PhD in cognitive psychology from the Massachusetts Institute of Technology. Shafir’s research focuses on decision-making, cognitive science, and behavioral economics, investigating how people make choices in situations of conflict and uncertainty, and how scarcity impacts cognition and behavior. He has served on the advisory committee to the Behavioral Insights Team, sometimes known as the “Nudge Unit,” in the UK, applying psychological insights to inform public policy and improve public services.

Shafir brings a psychological perspective to the study of scarcity, with a focus on cognitive processes and decision-making. His research on how scarcity affects attention, choices, and behaviors complements Mullainathan’s economic analysis by providing a deeper understanding of the mechanisms behind scarcity-induced behaviors. Shafir’s exploration of “choice architecture”—how different ways of presenting choices can dramatically influence outcomes—has practical implications for designing policies and programs that can help individuals better manage scarce resources. His academic work and advisory roles have positioned him at the forefront of efforts to integrate psychological insights into public policy, particularly in areas such as health, education, and welfare.

Together, Mullainathan and Shafir bring an interdisciplinary approach to the study of scarcity. Mullainathan’s background in economics and behavioral science complements Shafir’s expertise in psychology and cognitive science, allowing them to jointly tackle the nuanced ways in which scarcity affects individuals and societies. Their work on Scarcity synthesizes research across disciplines to offer a comprehensive look at how the lack of time, money, and other resources shapes people’s choices, behaviors, and well-being.