[Book Review] For Those Who Always Say 'I Don't Have Time': The Behavioral Economics of Scarcity

いつも「時間がない」あなたに　欠乏の行動経済学 (早川書房)

センディル ムッライナタン (著),エルダー シャフィール (著),大田 直子 (翻訳)

Amazon

Overview

This book delves into the impact of scarcity on our behavior, taking a behavioral economics approach. The authors, a psychologist and an economist, use rich experimental data to examine the causes of scarcity in our daily lives, including the lack of time and money.

I learned about this book through a recommendation by Dr. Honeshaburi.

https://honeshabri.hatenablog.com/entry/books-2020-1

The Impact of Scarcity

The book highlights two significant effects of scarcity: tunneling and cognitive load.

Tunneling

Tunneling refers to the phenomenon where our attention becomes focused solely on the task at hand, making us oblivious to other important things. For instance, when a deadline is approaching, our concentration increases, but we tend to neglect other tasks. This can be effective in the short term but leads to neglect of other important tasks.

People who lack time or money often prioritize the task in front of them, causing tunneling. As a result, they fail to address the root cause of their scarcity, leading to a vicious cycle. For example, busy workers may struggle to take on new tasks, neglect their health, and become trapped in a cycle of scarcity.

The same principle applies to financial scarcity. The book discusses the concept of "payday loans," which involve borrowing small amounts of money at high interest rates to cover immediate expenses. This can lead to a cycle of debt, as individuals become trapped in a cycle of borrowing and repayment.

Cognitive Load

Our judgment and decision-making abilities are limited resources, much like our physical strength. When we are scarce in time or money, our cognitive load increases, making it difficult to make sound decisions. This is evident in the way we manage our schedules when we are busy, often leading to increased stress and decreased productivity.

Similarly, financial scarcity can lead to increased anxiety and decreased cognitive ability, making it difficult to make rational decisions.

Scarcity Begets Scarcity

The two effects mentioned above can lead to a vicious cycle of scarcity. When we are scarce in time or money, we tend to focus on the immediate task at hand, neglecting other important aspects of our lives. This can lead to further scarcity, creating a self-reinforcing cycle.

Causes and Solutions of Scarcity

To avoid falling into the trap of scarcity, it is essential to have a buffer or "slack" in our lives. This can be achieved by having a financial safety net or a flexible schedule.

Creating Slack

Having slack in our lives allows us to respond to unexpected events without falling into scarcity. The book cites the example of a hospital that increased its efficiency by intentionally leaving one operating room empty, allowing for flexibility in case of emergencies.

Providing Slack from the Outside

The book also discusses the importance of timing when providing external support to individuals in scarcity. Providing support during times of abundance can be more effective in helping individuals escape scarcity.

Other Points

The book also touches on the idea that scarcity can affect our perception of value, citing an experiment that shows how individuals in poverty tend to overvalue small amounts of money. This has implications for how we design support systems for those in need.

Conclusion

This book provides a comprehensive exploration of the impact of scarcity on our behavior, using real-life examples and experimental data to illustrate its effects. By understanding the causes of scarcity, we can take steps to create slack in our lives and avoid falling into the trap of scarcity. This book is a valuable read for anyone who has ever felt like they don't have enough time or money.