Document Type : Review article
Authors
1 دانشگاه فردوسی مشهد
2 Department of economics, Faculty of Administrative Sciences and Economics, Ferdowsi University of Mashhad
3 Department of Economics, Faculty of Administrative and Economic Sciences , Ferdowsi University of Mashhad
Abstract
Despite the growing development of cognitive studies, cognitive sciences remain overlooked in Iran, particularly among economists unfamiliar with experimental design. A review of experimental studies in cognitive economics could serve as a valuable resource for researchers. This systematic review examines how poverty and scarcity influence economic behaviors via cognitive mechanisms Through the searches in Google Scholar, Science Direct, Scopus, and Web of Knowledge databases using keywords including "scarcity," "decision making," "economic preferences," "cognitive performance," "poverty," "working memory," "inhibitory control," "executive function," and "cognitive load," 26 English articles were selected and reviewed in multiple stages based on inclusion/exclusion criteria. The report adheres to the PRISMA 2020 guidelines. Findings reveal that over 90% of the studies demonstrate heightened temporal discounting under scarcity. The impact of scarcity on risk preferences remains inconclusive: 60% of studies report reduced risk-taking, 20% observe increased risk aversion, and 20% find no significant association. Anxiety and stress under scarcity correlate with diminished risk tolerance; however, establishing causal relationships or mediating roles requires further statistical analysis. In consumer decision-making, scarcity attenuates biases such as ownership effects, framing, and illusory causation but amplifies scarcity-induced biases. The issue of scarcity and its impact on individuals’ economic choices and decision-making is increasingly recognized. However, due to complexities surrounding poverty, how it is manipulated in experiments, control of intervening factors, and differentiation of economic decisions, making precise statements about the impact of poverty and scarcity on economic decisions becomes challenging. There is a need for more innovative research, especially using brain mapping techniques.
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