Thursday, April 23, 2015

Scarcity by Sendhil Mullainathan and Eldar Shafir



  • This is a new take on problems commonly addressed in self help books.
  • The authors use scarcity as a panacea. Scarcity explains all things. This overlooks the inherent complexity in human behavior.  
    • For example, the authors argue that poor farmers don't buy crop insurance because they are in a scarcity imposed "tunnel." This overlooks the well-documented human tendencies to focus on the short-term over the long-term regardless of scarcity.
    • Bandwidth, the author's concept for mental space or energy, is also used in a singular way.  Human behavior is much more nuanced than the authors contend.
Overall, Scarcity is incredibly interesting.  The concepts of bandwidth and slack are valuable contributions to self help bookshelf.

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