Sendhil Mullainathan Quotes

If you have urgent current expenses to cover, then future priorities like college and retirement fall off your radar because they are simply less pressing. Scarcity of attention prevents us from seeing what's really important. The psychology of scarcity engrosses us in only our present needs.

January is always a good month for behavioral economics: Few things illustrate self-control as vividly as New Year's resolutions. February is even better, though, because it lets us study why so many of those resolutions are broken.

No one would say, 'Hey, I think this medicine works, go ahead and use it.' We have testing, we go to the lab, we try it again, we have refinement. But you know what we do on the last mile? 'Oh, this is a good idea. People will like this. Let's put it out there.'

Our outrage at inequality is primal. But primal emotions are not always noble ones. Of course, when I see a colleague receive some award, I covet it. But this is not me at my best, and these are not the feelings we would instill and promote in our children.

Eat better or work out more, and you'll see the benefits weeks, months or years down the road. Sleep more, and you'll see the benefits tomorrow.

For somebody for whom they're going to buy a certain amount of gas irrespective of the price, should they really spend so much time thinking about the price of gas? It doesn't affect anything they do.

Economists specialize in pointing out unpleasant trade-offs - a skill that is on full display in the health care debate. We want patients to receive the best care available. We also want consumers to pay less. And we don't want to bankrupt the government or private insurers. Something must give.

Policymakers think that if they get the abstractions right, that will drive behavior in the desired direction. But the world happens in real time.

We ought to arrange calendars as we arrange art on our walls and ask: how does this task fit next to the surrounding ones?

If you go and stop people at a supermarket and ask them for their receipt and say, 'Hey how much did you just spend?' middle class shoppers have no idea. The poor know what they just spent.

If women's choices - such as taking time off to rear children - make them less productive in the economy, does adolescent boys' behavior in school make them even less so, because they are missing the educational potential of their formative years?

The present presses automatically on you. The future does not. To attend to the future requires bandwidth, which scarcity taxes. When scarcity taxes our bandwidth, we become even more focused on the here and now. We need cognitive resources to gauge future needs, and we need executive control to resist present temptations. As it taxes our bandwidth, scarcity focuses on the present, and leads us to borrow.

Busy people all make the same mistake: they assume they are short on time, which of course, they are. But time is not their only scarce resource. They are also short on bandwidth. By bandwidth I mean basic cognitive resources - psychologists call them working memory and executive control - that we use in nearly every activity.

It's hard to get people to empathize with the poor. You can get some people to sympathize with the poor, but to empathize is actually very hard, because most people are not poor. I realized that scarcity gives you a thread.

Things that price at $4.99 sell very differently than things that price at $5.

There's a popular image of people who don't save for the future as lacking in self-control. But the reason saving is so hard has less to do with self-control and more to do with a scarcity of attention.

Even when a man and a woman perform equally well in a task - say, solving math problems - men are more willing to enter competitions based on that task. Men also show less risk aversion.

The amount of resources we put in are disparate. We put billions of dollars into fuel-efficient technologies. How much are we putting into energy behavior change in a credible, systematic, testing way?

A few drugs - such as beta-blockers, statins and glycogen control medications - have proved very effective at managing hypertension, heart disease, diabetes and strokes. Most insurance plans charge something for them. Why not make drugs like these free? Not for everyone, but just the groups for whom they are provably effective.

It is safe to say that when people are short on cash, they might be less productive at work, be worse parents, and have less self-control.

We should try to ensure that everyone has a fair opportunity to find a great life. It's a quest that will require political will and ingenious policies. President Obama's proposed expansion of the earned-income tax credit goes in this direction, but we need more.

Organizations talk about spending their lives firefighting - dealing with the next problem without having the bandwidth to deal with what is down the pipeline. I think most of the poor have that problem.

If you send out one coupon with a deadline of a week and another that must be used within the next month, you end up having more redemptions with the one week deadline. It's really amazing. With the month deadline you have four times as much time, but people tend to say they'll use it in a few weeks' time and then they don't do it.

Our soft hearts are what tell us that, whatever the circumstances of birth, everyone must be given opportunities to do well.

What this tells us is that expertise, a deeper understanding of the units, can alter perception. Musicians

People will often take an interesting experimental study which has been done in the world, perhaps at small scale, and then it's touted as some big solution.

The scarcity trap captures this notion we see again and again in many domains. When people have very little, they undertake behaviors that maintain or reinforce their future disadvantage. If you have very little, you often behave in such a way so that you'll have little in the future.

Many systems require slack in order to work well. Old reel-to-reel tape recorders needed an extra bit of tape fed into the mechanism to ensure that the tape wouldn't rip. Your coffee grinder won't grind if you overstuff it. Roadways operate best below 70 percent capacity; traffic jams are caused by lack of slack. In principle, if a road is 85 percent full and everybody goes at the same speed, all cars can easily fit with some room between them. But if one driver speeds up just a bit and then needs to brake, those behind her must brake as well. Now they've slowed down too much, and, as it turns out, it's easier to reduce a car's speed than to increase it again. This small shock - someone lightly deviating from the right speed and then touching her brakes - has caused the traffic to slow substantially. A few more shocks, and traffic grinds to a halt. At 85 percent there is enough road but not enough slack to absorb the small shocks.

The ability to save automatically is among the most powerful tools available to us.

You and I can be busy, and we take a vacation from work. You can't take a break from being poor. You can't say, 'Hey I've had enough of worrying about money, I'm just going to be rich for a couple of weeks until I've recovered.'

Faced with a time shortage, we squeeze tasks into the nooks and crannies of our calendar, leaving less and less time to switch between them. As a result, we become less and less productive exactly when we need to be most productive.