A scarcity mindset alters neural processing underlying consumer decision making

Recalling experiences of scarcity reduces children's generosity relative to recalling abundance

Does a sense of having less or more than what one needs affect one's generosity? The question of how resource access influences prosocial behavior has received much attention in studies with adults but has produced conflicting findings. To better understand this relationship, we tested whether resource access affects generosity in the developing mind. In our preregistered investigation, we used a narrative recall method to explore how temporary, experimentally evoked states of resource abundance or scarcity affect children's sharing. In this study, 6- to 8-year-old American children (N = 148) recalled an experience of scarcity or abundance and then chose how many prizes to share with another child. We found that children in the scarce condition rated themselves as sadder, viewed their resource access as more limited, and shared fewer tokens than children in the abundant condition. Our results indicate that recalling past experiences of resource access creates distinct behavioral consequences for children and suggest that a sense of "having less" may encourage a strategy of resource conservation relative to a sense of "having more," even at a young age.

Neural correlates of willingness to pay for items: A meta-analysis of functional magnetic resonance imaging studies

Willingness to pay (WTP) pervades every marketplace transaction, therefore, understanding how the brain makes bidding decisions is essential in consumer neuroscience. Although some neuroimaging studies have investigated the neural networks of WTP, systematic understanding remains limited. This study identified reliable neural networks activated by the WTP across different reward types and assessed common and distinct neural networks for different reward types (food and other) bids. We conducted an activation likelihood estimation (ALE) meta-analysis on WTP across different reward types (25 studies; 254 foci; 705 participants), and to compared neural representations of WTP for food reward (22 studies; 232 foci; 628 participants) and other rewards (7 studies, 61 foci; 177 participants). The ALE results revealed that the brain centers of WTP for different rewards mainly consist of the bilateral inferior frontal gyrus (IFG), bilateral insula, bilateral anterior cingulate cortex (ACC), along with the left caudate. This suggests that neural networks encoding WTP for different rewards consist of brain regions associated with reward processing, cost-benefit calculations, and goal-directed action activities. In addition, consistent activation of the bilateral IFG and bilateral insula for food but no other rewards bids suggest their involvement in the neural network of appetite. WTP for food and other rewards commonly activated ACC, suggesting a common region encoding bids for different rewards. Our findings provide novel insights into neural networks associated with WTP for food and other rewards bids and the mechanisms underlying WTP across different reward types.

Tunneling, cognitive load and time orientation and their relations with dietary behavior of people experiencing financial scarcity - an AI-assisted scoping review elaborating on scarcity theory

BACKGROUND

The concept of a financial scarcity mindset has raised much attention as an explanation for poor decision-making and dysfunctional behavior. It has been suggested that financial scarcity could also impair dietary behavior, through a decline in self-control. Underlying cognitive mechanisms of tunneling (directing attention to financial issues and neglecting other demands), cognitive load (a tax on mental bandwidth interfering with executive functioning) and time orientation (a shift towards a present time horizon, versus a future time horizon) may explain the association between financial scarcity and self-control related dietary behavior. The current scoping review gathers recent evidence on how these mechanisms affect dietary behavior of people experiencing financial scarcity. It builds on a theoretical framework based on insights from behavioral economics and health psychology.

METHODS

A literature search was executed in six online databases, which resulted in 9.975 papers. Search terms were tunneling, cognitive load and time orientation, financial scarcity, and dietary behavior. Screening was performed with ASReview, an AI-ranking tool. In total, 14 papers were included in the scoping review. We used PRISMA-ScR guidelines for reporting.

RESULTS

Limited evidence indicates that a scarcity mindset could increase tunneling, through attentional narrowing on costs of food, which then directly impacts dietary behavior. A scarcity mindset involves experiencing financial stress, which can be understood as cognitive load. Cognitive load decreases attentional capacity, which could impair self-control in dietary choices. Financial scarcity is related to a present time orientation, which affects dietary choices by shifting priorities and decreasing motivation for healthy dietary behavior.

CONCLUSIONS

A scarcity mindset affects dietary behavior in different ways. Tunneling and a shift in time orientation are indicative of an attentional redirection, which can be seen as more adaptive to the situation. These may be processes indirectly affecting self-control capacity. Cognitive load could decrease self-control capacity needed for healthy dietary behavior because it consumes mental bandwidth. How a changing time orientation when experiencing financial scarcity relates to motivation for self-control in dietary behavior is a promising theme for further inquiry.

Scarcity mindset impairs distractor suppression but not target enhancement in selective attention: Evidence from ERPs

A scarcity mindset, induced by a perception of material scarcity, profoundly influences how individuals allocate their attention. Selective attention, a crucial cognitive control process enabling individuals to focus on relevant information while ignoring distractions, holds significant importance in both professional and personal domains. However, the specific impact of a scarcity mindset on selective attention and its underlying mechanisms remains uncertain. The objective of this study is to examine the specific impact of a scarcity mindset on selective attention using an experimental approach. Participants were subjected to either scarcity or neutral conditions, and their brain activity was measured using Electroencephalography (EEG) while performing a visual search task. The task involved identifying the direction of a target while disregarding a distractor, which was presented either laterally or in conjunction with the target along the vertical midline. The findings of our study indicate that individuals with a scarcity mindset displayed compromised selective attention, as evidenced by longer response times and weaker N2pc amplitudes in EEG recordings. Notably, distractor suppression was compromised, as evidenced by diminished Pd amplitudes, whereas the enhancement of targets remained relatively unaltered, as indicated by similar Nt amplitudes. These findings highlight a reduced ability to filter out irrelevant information in individuals with a scarcity mindset, thereby holding significant implications for social policies and practices.

Individual differences and creative ideation: neuromodulatory signatures of mindset and response inhibition

This study addresses the modulatory role of individual mindset in explaining the relationship between response inhibition (RI) and divergent thinking (DT) using transcranial direct current stimulation (tDCS). Forty undergraduate students (22 male and 18 female), aged between 18 and 23 years (average age = 19 years, SD = 1.48), were recruited. Participants received either anodal tDCS of the right IFG coupled with cathodal tDCS of the left IFG (R + L-; N = 19) or the opposite coupling (R-L+; N = 21). We tested DT performance using the alternative uses task (AUT), measuring participants' fluency, originality, and flexibility in the response production, as well as participants' mindsets. Furthermore, we applied a go-no-go task to examine the role of RI before and after stimulating the inferior frontal gyrus (IFG) using tDCS. The results showed that the mindset levels acted as moderators on stimulation conditions and enhanced RI on AUT fluency and flexibility but not originality. Intriguingly, growth mindsets have opposite moderating effects on the change in DT, resulting from the tDCS stimulation of the left and the right IFG, with reduced fluency but enhanced flexibility. Our findings imply that understanding neural modulatory signatures of ideational processes with tDCS strongly benefits from evaluating cognitive status and control functions.

Challenging cultured meat naturalness perceptions: The role of consumers' mindset

Cultured meat, produced through in vitro cultivation of animal cells, has emerged as a promising solution to environmental, health, and ethical issues resulting from conventional meat production. However, acceptance remains a crucial challenge, significantly influenced by perceptions of unnaturalness. Previous research has demonstrated the limited success of messaging strategies aimed at countering these perceptions. Across two experimental studies, this research breaks new ground by examining these strategies through the lens of mindset theory-i.e., beliefs about the fixedness or malleability of human attributes. In Study 1, we present findings illustrating that a strategy challenging the importance of naturalness is effective at increasing cultured meat acceptance among consumers with a growth mindset. In Study 2, we demonstrate how complementing such messaging strategy with a specific form of creative narrative can make it effective among consumers with a fixed mindset too. Our findings are informative theoretically, extending mindset and narrative theories to the context of cultured meat and, practically, examining the effectiveness of different communication strategies in driving consumer acceptance of the product.

To Take a Risk or Not? The Effect of Perceived Scarcity on Risky Choices

Studies suggest that resource scarcity leads to risky behaviors. From a cognitive perspective, a scarcity mindset affects the decision-making process. Does perceived scarcity therefore affect risk taking when making decisions? This study (N = 213) was conducted in western China to examine the effect of perceived scarcity on risky choices. Our results revealed that participants in the scarcity condition tended to be more risk averse than participants in the control condition when making a risky decision. Perceived scarcity increased the probability of choosing the safe option that offered a sure gain. The effect of psychological variables (emotion, risk attitude, personality, impulsivity, self-control and ego depletion) on risky choices was also tested. Risk attitude, urgency in impulsivity, and deliberate action in self-control also influence risky choices.

Subjective socioeconomic status and income inequality are associated with self-reported morality across 67 countries

Individuals can experience a lack of economic resources compared to others, which we refer to as subjective experiences of economic scarcity. While such experiences have been shown to shift cognitive focus, attention, and decision-making, their association with human morality remains debated. We conduct a comprehensive investigation of the relationship between subjective experiences of economic scarcity, as indexed by low subjective socioeconomic status at the individual level, and income inequality at the national level, and various self-reported measures linked to morality. In a pre-registered study, we analyze data from a large, cross-national survey (N = 50,396 across 67 countries) allowing us to address limitations related to cross-cultural generalizability and measurement validity in prior research. Our findings demonstrate that low subjective socioeconomic status at the individual level, and income inequality at the national level, are associated with higher levels of moral identity, higher morality-as-cooperation, a larger moral circle, and increased prosocial intentions. These results appear robust to several advanced control analyses. Finally, exploratory analyses indicate that observed income inequality at the national level is not a statistically significant moderator of the associations between subjective socioeconomic status and the included measures of morality. These findings have theoretical and practical implications for understanding human morality under experiences of resource scarcity.

Scarcity affects cognitive biases: The case of the illusion of causality

Previous research indicates that economic scarcity affects people's judgments, decisions, and cognition in a variety of contexts, and with various consequences. We hypothesized that scarcity could sometimes reduce cognitive biases. Specifically, it could reduce the causal illusion, a cognitive bias that is at the heart of superstitions and irrational thoughts, and consists of believing that two events are causally connected when they are not. In three experiments, participants played the role of doctors deciding whether to administer a drug to a series of patients. The drug was ineffective, because the percentage of patients recovering was identical regardless of whether they took the drug. We manipulated the budget available to buy the drugs, tough all participants had enough for all their patients. Even so, participants in the scarce group reduced the use of the drug and showed a lower causal illusion than participants in the wealthy group. Experiments 2 and 3 added a phase in which the budget changed. Participants who transitioned from scarcity to wealth exhibited a reduced use of resources and a lower causal illusion, whereas participants transitioning from wealth to scarcity were unaffected by their previous history.

The Impact of Sales Volume and Limited Quantity on Intertemporal Choice in an Online Consumption Context

In the context of online consumption, consumers are often faced with a decision between buying now or later. This study examines intertemporal choice by conducting two mixed experimental designs on a total of 206 college students to investigate the impact of combining sales volume and limited quantity on online consumption decisions. Experiment 1 revealed that under unlimited conditions, the same option with high sales volume was relatively more attractive and participants were more inclined to choose it, leading to a herding effect. However, under limited conditions, there was no scarcity effect. Experiment 2 built upon the findings of Experiment 1 and added dynamic change in sales volume. It was found that even with dynamic changes in sales volume, high sales volumes could still lead to a herding effect. In the case of unlimited conditions, dynamic changes in sales offset the effect of sales volume on intertemporal choice. Sales volume and limited quantity are important factors that influence consumers' purchasing decisions. Therefore, this study combines sales volume and limited quantity and adds dynamic changes in sales to explore individuals' intertemporal choices in online consumption situations. The findings of the study have significant implications for both merchants and consumers.

Influences of mental accounting on consumption decisions: asymmetric effect of a scarcity mindset

A scarcity mindset is considered to impact consumer behaviors. Our research aimed to examine the moderating effect of the scarcity mindset on the relationship between mental accounting and hedonic (vs. utilitarian) consumption. We conducted an online experimental design (mental accounting: windfall gains vs. hard-earning gains; consumption: hedonic products vs. utilitarian products) and verified our hypotheses in two distinct samples: a student sample and an adult sample. Our results showed that consumers who received windfall gains tended to use it for hedonic consumption rather than utilitarian consumption. Intriguingly, such an effect was insignificant under a high level of a scarcity mindset but significant under a low level of the scarcity mindset. Moreover, consumers who received hard-earning gains tended to spend the money on utilitarian (vs. hedonic) consumption. However, we did not detect the impact of the scarcity mindset on such effects. Our research suggested an asymmetric effect of the scarcity mindset on hedonic (vs. utilitarian) consumption under two different mental accounts. It highlights the important role of the scarcity mindset in consumer behaviors, which leaves avenues for future research to understand marketing promotion strategies for distinct products.

How high-intensity sensory consumption fills up resource scarcity: The boundary condition of self-acceptance

OBJECTIVE

Everyone in life will experience resource scarcity, which causes self-discrepancy. It is widely known that individuals participate in reactive consumption to solve the problems of self-discrepancy and resources scarcity. This kind of consumption may be symbolically related to the essence of the resource scarcity or may occur in an unrelated domain. This study proposes a theory for "filling up" one's resource scarcity through high-intensity sensory consumption (HISC).

METHODS

We used different methods, including one-way analysis of variance (ANOVA), linear regression, mediating effect, and moderating effect, to test the four hypotheses. Four experiments in the study were conducted from May 2022 and August 2022 and involved undergraduates from a university and volunteers recruited online. All participants are adults and verbally agree to participate voluntarily. Study 1a (N = 96 (male 47, female 49), participants from a business school in China) measured resource scarcity in the laboratory experiments and verified the effect of resource scarcity on consumer HISC preference by using linear regression (H1). Study 1b (N = 191 (male 98, female 93), students and teachers from a university in China) measured resource scarcity in the laboratory experiments and manipulated positively and negatively valenced experiences. Using the PROCESS SPSS Mode l, we verified that negatively valenced stimuli also lead to higher levels of arousal, which in turn restores the self-discrepancy caused by resource scarcity (H2). Study 2 (an online experiment, N = 182 (male 91, female 91), participants from China) manipulated the resource scarcity in a color sensory stimulant context, replicating the preliminary effect and examined the mediating effect of the self-worth by using the PROCESS SPSS Mode 4 (H3). Study 3 (an online experiment, N = 251 (male 125, female 126), participants from China) manipulated resource scarcity and self-acceptance in the tactile sensory experience, and tested the moderating effect of self-acceptance by using the PROCESS SPSS Mode 8 (H4).

RESULTS

Four studies suggest that not only do individuals facing resources scarcity prefer HISC but also that this consumption is mediated and moderated by self-worth and self-acceptance, respectively. This preference for HISC is negated when individuals have high self-acceptance traits. The findings are tested in the auditory domain (as evidenced by a propensity for louder volume), the visual domain (as evidenced by a propensity for more intense colors), and the tactile domain (as evidenced by a propensity for more intense need for touch). The findings also demonstrate that individual preferences for HISC is shown to operate regardless of the valence (positive valence vs. negative valence) of the sensory consumption.

CONCLUSIONS

Across four experiments, we find that individuals who are subjected to resource scarcity show a preference for high-intensity sensory consumption in the auditory, visual, and tactile domains. We also find that both negatively and positively valenced sensory stimuli have the same impact on resource-scarce individuals' preference for HISC. Furthermore, we demonstrate that the sense of self-worth significantly mediates the effect of resource scarcity on HISC. Finally, we reveal that self-acceptance moderates the effect of resource scarcity on HISC preference.

Influence of poverty concerns on demand for healthier processed foods: A field experiment in Mexico City

Living in poverty can present cognitive biases that exacerbate constraints to achieving healthier diets. Better diets could imply food choice upgrades within certain food categories, such as electing processed foods with an improved nutritional profile. This study evaluated the influence of monetary and health concerns on the willingness to pay (WTP) for healthier processed foods in a low-income section of Mexico City. We employed priming techniques from the scarcity literature, which are applied for the first time to healthier food purchasing behaviours in low-income settings. Our predictions are based on a dual system framework, with choices resulting from the interaction of deliberative and affective aspects. The WTP was elicited through a BDM mechanism with 423 participants. Results showed that induced poverty concerns reduced the valuations of one of the study's healthier food varieties by 0.17 standard deviations. The latter effect did not differ by income level. The WTP for a healthier bread product but one with relatively high sugar and fat content was reduced by induced poverty concerns only among certain consumers without bread purchasing restrictions (78% of the sample). Potential mechanisms were assessed through regression analysis and structural equation modelling. The relationship between poverty concerns and WTP was mediated by increased levels of stress. While we could not rule out impact on cognitive load, it was not deemed a mediator in this study. Our findings signal that improvements in economic and psychological well-being among low-income consumers may aid to increase their demand for healthier processed foods.

Like parent, like offspring: Intergenerational association of parental scarcity mindset with offspring's cooperative behaviors

A sense of resource availability creates a scarcity mindset, leading people to behave in a more competitive way instead of in a collaborative way. This study aims to examine the relationship between scarcity mindset and cooperative behaviors among parents and offspring, and to explore whether parents' scarcity mindset is related to their offspring's scarcity mindset and cooperative behaviors. We collected 239 parent-offspring pairs from several universities in northwest China. They completed the scarcity mindset scale and a one-shot public good game (PGG). A path model analysis was conducted to examine the relationship between scarcity mindset and cooperative behaviors for offspring and their parents, respectively. The relationship between parental scarcity mindset and offspring's cooperative behaviors was also examined. The results showed that there was a high correlation of scarcity mindset between parents and their offspring. Scarcity mindset was negatively related to cooperative behaviors among both parents and offspring. In addition, both parents' cooperative behaviors and offspring's scarcity mindset mediated the relationship between the parental scarcity mindset and offspring's cooperative behaviors. Our results supported the idea that scarcity mindset triggers competitive rather than cooperative orientation. The present findings reveal an intergenerational relationship between scarcity mindset and cooperative behaviors by highlighting the impacts of parental scarcity mindset on that of their offspring's and its additional effects on offspring's cooperative behaviors.

Scarcity mindset reduces empathic responses to others' pain: the behavioral and neural evidence

Resource scarcity pervades our life. A scarcity mindset triggered by perceiving insufficient resources has been proven to influence our cognition and behaviors, yet it remains unknown whether this mindset specifically influences empathy. The present study induced feelings of scarcity or abundance in separate groups of participants through experimental manipulation and examined the effects of both mindsets on the behavioral and neural responses to others' pain. Behaviorally, pain intensity ratings of others' pain were lower in the scarcity group than in the abundance group. The analysis of event-related potentials revealed that N1 amplitudes for painful and nonpainful stimuli were comparable in the scarcity group but differed significantly in the abundance group. Additionally, while both groups showed larger late positive potential amplitudes for painful stimuli than for nonpainful stimuli, this amplitude differential was significantly smaller in the scarcity group than in the abundance group. Thus, behavioral and neural evidence suggests that inducing a scarcity mindset significantly dampens the ability to empathize with others' pain during both the early and late stages of empathic processing. These findings shed light on our understanding of how a scarcity mindset may influence social emotions and behaviors.

Effect of scarcity experience on unethical behavior: The mediating role of consideration of future consequences

Scarcity experience occurs when people feel they have less than they need. Previous research indicates that scarcity experience affects individuals' cognitive function, social behavior, and decision-making process. However, it remains unclear whether and how experienced scarcity influences unethical behavior. This paper reports three studies testing the potential relationship and mediational mechanisms. Study 1 assesses the associations between general scarcity experience, desire for money, consideration of future consequences, and unethical behavior. Studies 2 and 3 then manipulate scarcity experience (versus abundant experience and a neutral control condition) through paradigms of recalling (Study 2) and imagining (Study 3), and test the effect on self-reported unethical behavior (Study 2) and actual unethical conduct (Study 3), as well as the mediating effects of desire for money and consideration of future consequences. The results show that individuals experiencing scarcity were more likely to behave unethically, regardless of gender, age, or socioeconomic status. However, consideration of future consequences mediated the effect of scarcity experience on unethical behavior only in Study 1. Further research is needed to uncover the underlying mechanism through which scarcity evokes unethical behavior.

Scarcity Enhances Outcome Evaluation in the Present: Electroencephalography Evidence

Scarcity goods have generally been perceived as high in value in real-world and empirical studies. However, few studies have investigated this value over time, such as performance in intertemporal decision making. This study’s chief objective was to determine how scarcity evaluation changes temporally. We used the electroencephalogram technique and an outcome evaluation task with the valuation of scarcity and ordinary rewards delivered at different times to explore the effect of scarcity on delay discounting. The feedback-related negativity (FRN) results show that ordinary goods were associated with a more negative amplitude than scarcity goods, and that rewards delivered in the future evoked more negative deflection compared to those delivered immediately. The prominent FRN effect was derived mainly from ordinary trials rather than scarcity trials in the immediate condition and in the future rather than only in the immediate condition. The Frontal Asymmetry Index (FAI) results show that the scarcity condition was associated with greater relative left frontal cortical activity than the ordinary condition when delivered immediately. The frontal asymmetry indicated greater approach motivation. Our electrophysiology data indicate that scarcity goods have a perceived high value, particularly when delivered immediately.

How perceived scarcity predicted cooperation during early pandemic lockdown

Both material resources (jobs, healthcare), and socio-psychological resources (social contact) decreased during the COVID-19 pandemic. We investigated whether individual differences in perceived material and socio-psychological scarcity experienced during the pandemic predicted preference for cooperation, measured using two Public Good Games (PGGs), where participants contributed money or time (i.e., hours indoors contributed to shorten the lockdown). Material scarcity had no relationship with cooperation. Increased perceived scarcity of socio-psychological wellbeing (e.g., connecting with family) predicted increased preference for cooperation, suggesting that missing social contact fosters prosociality, whilst perceived scarcity of freedom (e.g., limited movement) predicted decreased willingness to spend time indoors to shorten the lockdown. The importance of considering individual differences in scarcity perception to best promote norm compliance is discussed.

Risky decision-making strategies mediate the relationship between amygdala activity and real-world financial savings among individuals from lower income households: A pilot study

Lower financial savings among individuals experiencing adverse social determinants of health (SDoH) increases vulnerabilities during times of crisis. SDoH including low socioeconomic status (low-SES) influence cognitive abilities as well as health and life outcomes that may perpetuate poverty and disparities. Despite evidence suggesting a role for financial growth in minimizing SDoH-related disparities and vulnerabilities, neurobiological mechanisms linked with financial behavior remain to be elucidated. As such, we examined the relationships between brain activity during decision-making (DM), laboratory-based task performance, and money savings behavior. Participants (N = 24, 14 females) from low-SES households (income<$20,000/year) underwent fMRI scanning while performing the Balloon Analogue Risk Task (BART), a DM paradigm probing risky- and strategic-DM processes. Participants also completed self-report instruments characterizing relevant personality characteristics and then engaged in a community outreach financial program where amount of money saved was tracked over a 6-month period. Regarding BART-related brain activity, we observed expected activity in regions implicated in reward and emotional processing including the amygdala. Regarding brain-behavior relationships, we found that laboratory-based BART performance mediated the impact of amygdala activity on real-world behavior. That is, elevated amygdala activity was linked with BART strategic-DM which, in turn, was linked with more money saved after 6 months. In exploratory analyses, this mediation was moderated by emotion-related personality characteristics such that, only individuals reporting lower alexithymia demonstrated a relationship between amygdala activity and savings. These outcomes suggest that DM-related amygdala activity and/or emotion-related personality characteristics may provide utility as an endophenotypic marker of individual's financial savings behavior.

Scarcity Mindsets and Generational Differences in India: The Role of Cognitive and Affective Factors

This article addressed the question of the role played by certain cognitive and affective factors in explaining the differences in scarcity mindsets of Gen Z, Millennials, and the Pre-millennial generations. Three cognitive factors, namely, horizontal individualism, belief in a just world and a spiritual belief factor, anasakti (non-attachment) along with five affective factors, personal relative deprivation, greed, need for achievement, positive and negative emotions were used as predictors of the scarcity mindsets. Pre-millennials showed a weaker scarcity mindset compared to the Millennials, who among the three had the strongest scarcity mindset. In the case of Gen Z, a downward trend in the scarcity mindset was observed. Male respondents had stronger scarcity mindset than females. Sequential Regression Analysis was used to understand the role played by cognitive and affective factors in predicting scarcity mindset for each generation. It found that cognitive factors were better predictors than affective factors in the case of all three generations. In the case of Gen Z, belief in a just world and anasakti significantly predicted a weak scarcity mindset. Belief in a just world also predicted a weaker scarcity mindset in case of the Millennials and Pre-millennial generations. Personal relative deprivation, an affective factor, was significantly associated with a weak scarcity mindset in the case of Millennials but inversely for the Pre-millennials. A high need for achievement raised the level of scarcity mindset, but only for the Millennial generation. Horizontal individualism and greed did not come out as significant predictors of the scarcity mindset for any generation. The results are discussed in the changing context of globalisation and the digital revolution.

Are Energy-Vulnerable Households More Prone to Informative, Market, and Behavioral Biases?

The present paper focuses primarily on investigating whether energy-vulnerable households are more prone to informative, market, and behavioral biases. In this direction, a stated preference approach was used to elicit information about human behavior and cognitive barriers in the context of energy poverty based on both subjective and objective indicators. For the purposes of the survey, a questionnaire was developed that included around 40 questions about housing conditions and information, market, and behavioral barriers related to energy efficiency, energy vulnerability, etc., and specific survey hypotheses were tested employing non-parametric tests. The survey was carried out between November 2020 and January 2021 involving residents of Metsovo, a mountain settlement in Greece. In total, 303 participants took place in the survey through personal interviews, which were conducted remotely due to the COVID-19 pandemic-related distancing measures, using a video platform. The analysis shows that households that face thermal discomfort or are in arrears on energy bills seem to be more prone to certain behavioral and other biases. This conclusion is not confirmed for households that face condensation, mold and damp problems or are classified as energy-poor under the “ten percent rule”. The main conclusion drawn is that the income status of the household plays a greater role compared to its classification as energy vulnerable. Nevertheless, the findings of the study need to be confirmed by future research, because the research specifically on how energy poverty affects people’s decision making is extremely limited. In any case, the results are worrisome and illustrate the need for more effective energy poverty policies that will take into account the effects of scarcity on household decision making.

The role of short-term changes in cognitive capacity on economic expenditure among Kenyan agro-pastoralists

The increased exposure of pastoralist communities in East Africa to climatic shocks has focused attention on the resilience of these communities. Although many social scientists directly or indirectly infer versions of homo-economic agents, increasing evidence in development behavioral economics, indicates that such assumptions may be misplaced. Despite on-going advances in the science concerning the effects of stress on dynamic changes in short-term cognitive capacity, there remains limited understanding of the effects of changes in cognitive capacity on economic decision making. The present research empirically evaluates the drivers of short-term changes in cognitive capacity-cognitive ability and heuristic use-and its effect on crop and livestock expenditure among predominantly poor Kenyan agro-pastoralists. Three rounds of cognition and survey data from Samburu, Kenya is analysed. The primary data was collected at the end of the 2015-16 East African drought and covers an 11-month period between October 2016 and September 2017. Dynamic panel estimation, employing maximum likelihood, is used on balanced and unbalanced data. Results indicate that fluid intelligence and heuristic use, along with literacy and stressors, affect crop expenditure. Perceptions of scarcity, relative to prior expectations, are also identified as an important determinant of short-term changes in cognitive ability. These results underscore the importance of better understanding the effects of short-term changes in cognitive capacity on economic expenditure among the poor.

Data Triangulation in Consumer Neuroscience: Integrating Functional Neuroimaging With Meta-Analyses, Psychometrics, and Behavioral Data

This article reviews a wide range of functional magnetic resonance imaging (fMRI) studies conducted in the field of consumer neuroscience to (1) highlight common interpretative approaches of neuroimaging data (i.e., forward inference and reverse inference), (2) discuss potential interpretative issues associated with these approaches, and (3) provide a framework that employs a multi-method approach aimed to possibly raise the explanatory power and, thus, the validity of functional neuroimaging research in consumer neuroscience. Based on this framework, we argue that the validity of fMRI studies can be improved by the triangulation of (1) careful design of neuroimaging studies and analyses of data, (2) meta-analyses, and (3) the integration of psychometric and behavioral data with neuroimaging data. Guidelines on when and how to employ triangulation methods on neuroimaging data are included. Moreover, we also included discussions on practices and research directions that validate fMRI studies in consumer neuroscience beyond data triangulation.

Variable Cognition in ABM Decision-Making: An Application to Livestock Vaccine Choice

Modeling realistic human decision-making is an important feature of good policy design processes. The use of an agent-based modeling framework allows for quantitative human decision-models that assume fully rational agents. This research introduces a dynamic human decision-making sub-model. The parameterisation of human memory and "rationality" in a decision-making model represents an important extension of decision-making in ABMs. A data driven model of herd movement within a dynamic natural environment is the context for evaluating the cognitive decision-making model. The natural and human environments are linked via memory and rationality that affect herdsmen decision-making to vaccinate cattle using a once-for-life vaccine (Rift Valley fever) and an annual booster vaccine (Contagious Bovine Pleuropneumonia). The simulation model uses environmental data from Samburu county, Kenya from 2004 to 2015. The cognitive parameters of memory and "rationality" are shown to successfully differentiate between vaccination decisions that are characterized by annual and once-for-life choices. The preliminary specifications and findings from the dynamic cognition-pastoralist agent-based model (PastoralScape) indicate that the model offers much to livestock vaccination modeling among small-scale herders.