Componential Theory of Creativity

Teresa M. Amabile

Working Paper | HBS Working Paper Series | 2012

Componential Theory of Creativity

Abstract

The componential theory of creativity is a comprehensive model of the social and psychological components necessary for an individual to produce creative work. The theory is grounded in a definition of creativity as the production of ideas or outcomes that are both novel and appropriate to some goal. In this theory, four components are necessary for any creative response: three components within the individual--domain-relevant skills, creativity-relevant processes, and intrinsic task motivation--and one component outside the individual--the social environment in which the individual is working. The current version of the theory encompasses organizational creativity and innovation, carrying implications for the work environments created by managers. This entry defines the components of creativity and how they influence the creative process, describing modifications to the theory over time. Then, after comparing the componential theory to other creativity theories, the article describes this theory's evolution and impact.

Keywords: Creativity; Theory; Social Psychology; Organizational Culture;

Language: English

Format: Print

10 pages

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Citation:

Amabile, Teresa M. "Componential Theory of Creativity." Harvard Business School Working Paper, No. 12-096, April 2012.

Chapter | Handbook of Behavioral Economics | 2019

Behavioral Economics and Health-Care Markets

Amitabh Chandra, Benjamin Handel and Joshua Schwartzstein

This chapter summarizes research in behavioral health economics, focusing on insurance markets and product markets in health care. We argue that the prevalence of choice difficulties and biases leading to mistakes in these markets establish a special place for them in economic analysis. In addition, we argue that while the behavioral health-economics literature has done a better job documenting consumer-choice mistakes in insurance and treatment choices than explaining why those mistakes occur, it is clear that we should not ignore these mistakes in our analyses. We document evidence showing that consumers leave lots of money on the table in their insurance-plan choices, sometimes thousands of dollars. This is true both when consumers make active choices (e.g., they do not have a default plan) and when they make passive choices (e.g., they have a default plan). We discuss the implications of this body of work for the design and regulation of insurance markets, including the interaction between consumer choice difficulties or biases and adverse selection. We then document evidence on consumer mistakes in health-care utilization and treatment choices, especially in response to changes in prices such as copayments and deductibles. We show how choice difficulties or biases may lead patients to respond to such increases in patient cost-sharing by reducing demand for high-value care, muddying the traditional argument that the price elasticity of demand for medical care meaningfully captures the degree of moral hazard. We conclude with directions for future research.

Keywords: Behavioral economics; Consumer Behavior; Economics; Health Care and Treatment; Insurance; Markets;

Citation:

Chandra, Amitabh, Benjamin Handel, and Joshua Schwartzstein. "Behavioral Economics and Health-Care Markets." In Handbook of Behavioral Economics: Foundations and Applications 2, edited by B. Douglas Bernheim, Stefano DellaVigna, and David Laibson. Amsterdam: Elsevier/North-Holland, 2019. View Details

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