Book review: "SCARCITY"

Scarcity

by

Sendhil Mullainathan and

Eldar Shafir

QUOTE: -

Scarcity captures mind. The mind orients automatically, powerfully, toward unfulfilled needs.

When a concept occupies our thoughts, we see words related to it more quickly.

The capture of attention can alter experience.

Economics is the study of how we use our limited means to achieve our unlimited desires.

While physical scarcity is ubiquitous, the feeling of scarcity is not. The feeling of scarcity is distinct from its physical scarcity. The feeling of scarcity depends on both what is available and on our own tastes.

Having less is unpleasant. Scarcity leads to dissatisfaction and struggle.  Scarcity is not just a physical constraint. It is also a mindset.

When scarcity captures the mind, we become more attentive and efficient. Because we are preoccupied by scarcity, we have less mind to give to the rest of life. (thus becoming a burden)

The scarcity of all varieties leads to a shortage of bandwidth, affecting all aspects of our behavior. It perpetuates scarcity. Poor stays poor. The lonely stays lonely. The busy stay busy.

The consequences may not be of the same magnitude.

- UNQUOTE

The book describes the effect of scarcity and its implication very effectively, with a number of illustrations and research case studies. Scarcity, not just of money. Maybe scarcity of time, health, energy and many more....

A very good book to read. It gives you a new perspective about why we behave the way we behave. 

According to the cover page of the book, 

Sendhil Mullainathan is a professor of economics at Harvard University, a recipient of a MacArthur Foundation "genius grant" and conducts research on behavioral economics and development economics. He lives in Cambridge, Massachusetts.

Eldar Shafir is the William Stewart Tod Professor of Psychology and Public Affairs at Princeton University. He conducts research in cognitive science, judgment and decision making, and behavioral economics. He lives in Princeton, New Jersey.

Mullainadhan and Shafir are cofounders of ideas42, a nonprofit that designs behavioral economics solutions to social problems.

T N Neelakantan

www.neel48.blogspot.com