How does a lack of money affect economic decision-making? Why are poor people more rational decision-makers? According to behavioral science researchers Sendhil Mullainathan and Eldar Shafir, financial scarcity forces people to become experts at making a dollar stretch further. As a result, poor people tend to make more rational economic decisions. Here’s how a lack of money affects economic decision-making.
How a Lack of Money Impacts Economic Decision-Making










