Unlocking Innovation: Sendhil Mullainathan on the Sweet Taste of New Ideas
In the realm of behavioral economics, Sendhil Mullainathan stands as a beacon of innovative thought. A Peter de Florez Professor at MIT, with appointments in both Economics and Electrical Engineering and Computer Science, and a principal investigator at the MIT Laboratory for Information and Decision Systems (LIDS), Mullainathan equates the joy of discovering a groundbreaking idea to the pleasure of savoring a perfect Levain cookie.
“That hedonic pleasure is pretty much the same pleasure I get hearing a new idea, discovering a new way of looking at a situation, or thinking about something, getting stuck and then having a breakthrough. You get this kind of core basic reward,” Mullainathan explains.
Mullainathan’s unique perspective stems from a childhood tendency to see multiple valid answers where others saw one. He recalls struggling with multiple-choice tests, finding compelling reasons for various options to be correct. This “out of phase” thinking, as he describes it, has proven invaluable in his research, allowing him to approach problems from unconventional angles.
His contributions have earned him numerous accolades, including a MacArthur “Genius Grant,” recognition as a “Young Global Leader” by the World Economic Forum, and inclusion in Foreign Policy and Wired magazine’s lists of top thinkers and world-changers, respectively. He also received the Infosys Prize, a prestigious award recognizing excellence in science and research in India.
Mullainathan’s focus on financial scarcity is rooted in his personal history. At the age of 10, after his family had moved from India to Los Angeles, his father lost his job, exposing him to the realities of economic precarity. This experience profoundly shaped his research interests.
He studied computer science, economics, and mathematics at Cornell University, eventually gravitating towards behavioral economics under the influence of Richard Thaler, a pioneer in the field and Nobel laureate. Mullainathan was captivated by the field’s integration of psychology into economic decision-making.
“It’s the non-math part of this field that’s fascinating,” says Mullainathan. “What makes it intriguing is that the math in economics isn’t working. The math is elegant, the theorems. But it’s not working because people are weird and complicated and interesting.”
His commitment to understanding human behavior led him to spend a decade studying people, seeking the intuitive understanding of a seasoned psychologist. This dedication culminated in impactful research, such as his 2013 Science paper, “Poverty Impedes Cognitive Function.” The study demonstrated a direct correlation between financial strain and cognitive performance among sugarcane farmers.
The findings revealed that farmers scored significantly lower on intelligence tests before their harvest, when resources were scarce, compared to after they were paid. This research has influenced policy, fostering sensitivity towards the challenges faced by individuals in economic precarity.
Returning to MIT after a previous stint, Mullainathan now focuses on artificial intelligence and machine learning, aiming to expand human capabilities through algorithms. He envisions a future where AI assists in decision-making by providing insights into one’s average behavior, potentially mitigating the impact of temporary emotional states or biases.
“Average-you is better than you. Imagine an algorithm that made it easy to see what you would normally do… You may have a good reason to be doing something different, but asking that question is immensely helpful,” Mullainathan suggests.
Mullainathan believes the intersection of understanding people and understanding algorithms holds the key to future breakthroughs in science. His work promises a future where technology empowers individuals to rethink their lives and potential.
