In 1967, George Akerlof, a first-year economics professor at the University of California, Berkeley, wrote a thirteen-page paper that used economic theory and a handful of equations to examine a corner of the commercial world where few economists had dared to tread: the used-car market. The first two academic journals where young Akerlof submitted his paper rejected it because they “did not publish papers on topics of such triviality.” The third journal also turned down Akerlof’s study, but on different grounds. Its reviewers didn’t say his analysis was trivial; they said it was mistaken. Finally, two years after he’d completed the paper, The Quarterly Journal of Economics accepted it and in 1970 published “The Market

for ‘Lemons’: Quality Uncertainty and the Market Mechanism.” Akerlof’s article went on to become one of the most cited economics papers of the last fifty years. In 2001, it earned him a Nobel Prize.

In subsequent research, they and other scholars found that people most disposed to creative breakthroughs in art, science, or any endeavor tend to be problem finders. These people sort through vast amounts of information and inputs, often from multiple disciplines; experiment with a variety of different approaches; are willing to switch directions in the course of a project; and often take longer than their counterparts to complete their work.

The researchers discovered that participants based their decisions on two factors: utility and curiosity.

In 2008, he [Grant] carried out a fascinating study of a call center at a major U.S. university…

But the people in the purpose group kicked into overdrive. They more than doubled “the number of weekly pledges that they earned and the amount of weekly donation money that they raised.

Professor Sheena Iyengar from the Columbia Business School is a psycho- economist who specializes in decision making. Her famous “jam study” was done using specialty jams in a grocery store. One week, the researchers set up a table in the store showing off six different specialty jams (with snazzy flavors like kiwi-orange, strawberry-lavender...you get the idea). Then they watched how the shoppers behaved—who stopped to look and, of those who stopped, who actually bought some jam. The first week, with six jams on display, 40 percent of the shoppers stopped to check out the six jams and about a third of them bought one—about 13 percent of the shoppers.

A few weeks later, in the same store, with the same time frame, the researchers came back with twenty-four jams. This time, 60 percent of the shoppers in the store stopped by—a 50 percent increase over the six-jam display! But with twenty-four jams on display, only 3 percent of the shoppers bought one.