

145. Do You Have a Scarcity Mindset or an Abundance Mindset?
62 snips May 7, 2023
Dive into the contrasts between scarcity and abundance mindsets and their surprising effects on behavior and decision-making. Discover how real-world examples, like Microsoft's leadership shift, showcase the power of collaboration over competition. Hear personal stories, including a poignant lesson on opportunity costs from Stephen's mother. As the hosts reflect on their journey together, they hint at exciting future topics in behavioral science, leaving listeners with both nostalgia and anticipation for what’s next.
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Origin of Scarcity and Abundance Mindsets
- The "scarcity mindset" and "abundance mindset" originated from Stephen Covey's book "The Seven Habits of Highly Effective People."
- These describe opposing views on resource availability, impacting behaviors like sharing and collaboration.
Nadella's Abundance at Microsoft
- Satya Nadella, Microsoft's CEO, shifted the company culture from a scarcity mindset to one of abundance.
- This involved embracing collaboration with rivals like Google and Apple, leading to significant growth.
Scarcity's Impact on Decision-Making
- Actual scarcity creates a mindset focused on immediate needs.
- This can lead to suboptimal long-term decisions like accumulating debt, as shown in research by Sendhil Mullainathan and Eldar Shafir.