1.
The Brain Science of Scarcity:
Applying What We Know
Crystal C. Hall
Associate Professor
Evans School of Public Policy and Governance
University of Washington
November 16, 2016 | 2016 RE:Conference

2.
Understanding human behavior
● Rational agent model (normative)
○ Well-informed
○ Stable preferences
○ Controlled and calculating
● Behavioral model (descriptive)
○ Mediocre judgment
○ Malleable preferences
○ Impulsive
■ but behavior is often predictable!

3.
A key observation:
Individuals are “irrational” but often
extremely predictable!

4.
Decision Making in the Context of Poverty
● Two views of behavior
○ Rational agent view
○ “Culture of poverty” view
● An alternative: A behavioral perspective
○ Better predictor of behavior
(Bertrand, Mullainathan & Shafir, 2006)
○ Policy implications
(Hall, 2012; Hall, Galvez & Sederbaum, 2014)

5.
Scarcity and Decision Making
● General principle of psychological scarcity
○ Time
○ Money
● Behavioral patterns
○ Constant need for trade-offs
○ Short-term planning
*Huge policy implications here!

6.
Scarcity and Decision Making
● Nuanced way of viewing the behavior of LI individuals
○ Just as “irrational” as many others
(dieters, overstretched professionals….)
● Clearly extends to many decision domains…

7.
Johnson & Goldstein, 2003

8.
Taking Information
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
Affirmation Neutral
PercentTaking
Taking Information about EITC
Hall, Zhao & Shafir, 2014

9.
Social and Behavioral Sciences Team (SBST)
What is it?
The Social and Behavioral Sciences Team (SBST) is a cross-agency group of
experts in applied behavioral science.
Psychology, Economics, Political Science, Design/Human Computer Interaction
Who is it?
SBST is chaired by the Office of Science and Technology Policy (OSTP) and
includes representation from a dozen member agencies across the Federal
Government, as well as offices within the Executive Office of the President.
What does it do?
SBST translates findings and methods from the social and behavioral sciences
into improvements in Federal policies and programs for the benefit of the
American people.

10.
Applying Social & Behavioral Insights
1. Improving access – (e.g. active choices)
1. Promoting good choices – (e.g. default settings)
1. Setting policy parameters – (e.g. incentive structures)

11.
SBST Project Areas
(sbst.gov)
Promoting Retirement Security Responding to Climate Change
Advancing Economic Opportunity Assisting Job Seekers
Improving College Access Supporting Criminal Justice Reform
Improving Access to Health Care Improving Gov’t Efficiency

12.
What are
we trying to
achieve?
How does
behavior
play a role in
outcomes?
How does
Gov’t (or any
org) interact
with people?

13.
Any program or service has a direct connection
with a citizen
• Focus on a key touchpoint (e.g., form or text
message)
• Ideally, randomize treatment in order to test (to
evaluate impact)

14.
The outcome of interest is reliant upon individual
action
• Ability to observe (and measure) the behavior of
interest (e.g., program uptake)

15.
The objective is already clearly defined
• Try to find a rigorous way to measure
effectiveness and achievement towards an
agency-defined outcome

16.
Thank you!
hallcc@uw.edu
sbst.gov

17.
Technical
supplement to 2014
BIAS report.
http://www.acf.hhs.g
ov/sites/default/files
/opre/bias_2014_rep
ort_technical_supple
ment.pdf