anuj shah eldar shafir sendhil mullainathan sjdm 2012 the stable frame of scarcity
TRANSCRIPT
Anuj Shah
Eldar Shafir
Sendhil MullainathanSJDM2012
The Stable Frame of Scarcity
Behavioral magic
Hall(2008)
Having more means…
Having less means…
Scarcity and context
Abundance: Scarcity:
Predictions
Scarcity creates a stable frame for value
This is true for various forms of scarcity
Thaler (1985)
N = 148
Study 1: WTP
Low Income High Income0
1
2
3
4
5
6
7Resort
Grocery
WTP (
$)
Study 2: Valuing money
Slovic et al.(2002)
Study 2: Attractiveness
Low Income High Income0
2
4
6
8
10
12
14No Loss
Loss
Att
ract
iveness
N = 100
Study 3: The broader context
Study 3: Using the ticket
Price Paid Market Price1
2
3
4
5
Low Income
High Income
N = 98
Study 4: Fixed resources
“that’s expensive!” “that’s not so bad.”
Morewedge et al. (2007)
Study 4: Expensiveness
Low Income High Income123456789
1011
Small
Large
Expensi
veness
N = 123
Study 5: Caloric scarcity
Study 5: Fattiness
Dieter Non-dieter1
2
3
4
5
6
7
8
9
10
11Small
Large
Fatt
enin
g
N = 85
Study 6: The feud
Study 6: Expensiveness
Poor Rich123456789
1011
Small
Large
Expensi
veness
N = 73
What we’ve seen
Scarcity leads to more stable valuation
And somewhat less flexible accounting
Perhaps because scarcity creates a salient, stable context
Thanks
Experiment 7
Epley et al. (2006)
Experiment 7
N = 141
Low Income High Income0
10
20
30
40
50
60
70
80
90
100rebate
bonus
% S
ave