Book Summary 23 — Paradox of Choice

The book argues that more choice does not make people better off because of adaptation, regret, missed opportunity, raised expectation and feelings of inadequacy in comparison with others.

Experiment in Supermarket

Small number of jars — 30% bought
Large number of jars — 3% bought

Maximisers always want to explore every single last option before they make their decision, which needs to be optimal and end up buying nothing. The “tyranny of small choices” makes us tired and we don’t end up making any decision. It’s the marginal cost of going to another store and another store when shopping — is it really worth going to store 101, when you have been to 100 already?

“Voluntary Simplicity” movement — too many decisions, too little time to focus on what’s important, let’s keep the unimportant decisions simple

…because we have so many choices in life, we never just enjoy what we have, but also look for more and are ready to jump on the next opportunity.

Expected vs. Remembered Utility

We make decisions based on expected utility, which (if we have made the experience before) is based on remembered utility. Remembered utility is distorted — one example being that the end of an experience has a lasting effect on us and we remember the whole experience more or less fondly based on it.

Availability Heuristic

What impacts us more is more vivid in our memory and we remember better, making decisions based on it.

Anchoring

Pre-mentioning something that sets an anchor and we compare things against it, even though it doesn’t necessarily mean anything.

Framing

Discount vs Surcharge
- prefer discounts to surchargers
- prefer saving than losing
Hate aversion — we hate to lose stuff
Endowment effect — attribute everything we own more value

Maximiser — has to see and try every last alternative
Suficer —settle for good enough, not worry about possibility of better

1. Maximisers savor positive events less — less happy, more depressed
2. Maximisers well-being takes longer to recover — buyer’s remorse
3. Maximisers tend to brood

We must decide when choices really matter and focus our energy there!

Taking away choices from us makes us happier and we can focus on important choices — marriage, religion, friends, commitments — even though they bind us liberate us in a way.
- individuals with ‘nonreversible’ marriages are happier than with ‘reversible’ ones

Following rules eliminates troublesome choices.

Standards and presumptions establish rules which we follow.

We regret most the things we didn’t do, not the ones we did do.

Short term we regret a broken romance, long run the missed romantic opportunity.
Short term we regret a bad educational choice, long run the missed educational opportunity.

Adaptation to Current State

We take what we have as granted, no matter how much we gain.

We’re on a hedonic treadmill. No matter how fast we run you still don’t get anywhere. No matter how good your choices and pleasurable the results, you still end up where you started in terms of subjective experience.

Tips to be Happy

1. Be Grateful for what you have!
2. Don’t always treat yourself, save it for a special occasion.
3. Choose the right pond — don’t compare yourself to everyone.
4. Happy people distract themselves and move on — don’t get stuck ruminating.
5. Take control over your life — it matters — it makes you happy.
6. Don’t self-blame.

Tips to make the Right Choices

1. Choose when to choose — which choices really matter, focus energy there
2. Be a chooser not a picker — create your own opportunities
3. Think of the opportunity cost of you making a decision
4. Make your decisions nonreversible
5. Practice attitude of gratitude
6. Anticipate adaptation and remind yourself that you didn’t use to be that affluent/happy
7. Control expectations
8. Curtail social comparison