This provocative book showa that scarcity creates a distinct psychology for everyone struggling to manage with less than they need. The dynamics of scarcity reveal why dieters find it hard to resist temptation, why students and busy executives mismanage their time, and why the same sugarcane farmers are smarter after harvest than before. Scarcity reveals not only how it leads us astray but also how individuals and organizations can better manage scarcity for greater satisfaction and success.
What Andy Haldane says
An extraordinary book. It has received, in my view, far too little attention. Scarcity of goods, services, resources and time have all been analyzed to death. The scarcity that exists between our ears — our cognitive bandwidth — has scarcely been analyzed at all. Mullainathan and Shafir show that this neurological constraint is fundamental in explaining all manner of behaviors and outcomes, from unaffordable borrowing to measured IQs. The public policy implications are potentially profound.