On the Consequences of Scarcity: When Limited Resources Promote Agentic Responses

Abstract:     
Everyday consumers encounter reminders of what is scarce. However, relatively little is known about the psychological processes that result when the concept of scarcity is activated, and further what influence those processes might have on subsequent, unrelated decisions. In this article, the authors posit that activating the concept of scarcity causes an underlying shift towards an agentic orientation. They demonstrate that this agentic orientation guides people’s decision making towards advancing their own welfare, relative to that of others, promoting either increased selfishness or increased generosity, depending on the associated benefits to the self. Overall, this research offers a novel perspective that advances our theoretical understanding of the psychology of scarcity and provides important practical implications.

Number of Pages in PDF File: 41

Keywords: scarcity, agency, decision making, choice

working papers series