The Psychology of Scarcity: How Limited Resources Affect Decision-Making
Manage episode 446498822 series 3610201
How does living with limited resources affect the way we think and make decisions? In this episode of Mind Theory, we explore the psychology of scarcity and how a lack of resources—whether money, time, or social connection—drains mental bandwidth and impacts cognitive function. Based on the research of Princeton psychologist Eldar Shafir and Harvard economist Sendhil Mullainathan, we’ll discuss how the scarcity mindset leads to poor decision-making, increased stress, and a tunnel vision that limits long-term thinking. Learn how scarcity shapes behavior and what can be done to alleviate its effects on individuals and society.
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