The Paradox of Choice: Why More Is Less
Encyclopedia
The Paradox of Choice - Why More Is Less is a 2004 book by American psychologist
Psychologist
Psychologist is a professional or academic title used by individuals who are either:* Clinical professionals who work with patients in a variety of therapeutic contexts .* Scientists conducting psychological research or teaching psychology in a college...

 Barry Schwartz. In the book, Schwartz argues that eliminating consumer
Consumer
Consumer is a broad label for any individuals or households that use goods generated within the economy. The concept of a consumer occurs in different contexts, so that the usage and significance of the term may vary.-Economics and marketing:...

 choices can greatly reduce anxiety
Anxiety
Anxiety is a psychological and physiological state characterized by somatic, emotional, cognitive, and behavioral components. The root meaning of the word anxiety is 'to vex or trouble'; in either presence or absence of psychological stress, anxiety can create feelings of fear, worry, uneasiness,...

 for shoppers. This same issue was first proposed by José Ortega y Gasset
José Ortega y Gasset
José Ortega y Gasset was a Spanish liberal philosopher and essayist working during the first half of the 20th century while Spain oscillated between monarchy, republicanism and dictatorship. He was, along with Nietzsche, a proponent of the idea of perspectivism.-Biography:José Ortega y Gasset was...

 in Chapter 4 of his book The Revolt of the Masses
The Revolt of the Masses
The Revolt of the Masses is the English translation of José Ortega y Gasset's La rebelión de las masas. The original was first published as a book in 1930; the English translation, first published two years later, was authorized by the author...

.

Barry Schwartz's thesis

Schwartz assembles his argument from a variety of fields of modern psychology that study how happiness
Happiness
Happiness is a mental state of well-being characterized by positive emotions ranging from contentment to intense joy. A variety of biological, psychological, religious, and philosophical approaches have striven to define happiness and identify its sources....

 is affected by success or failure of goal achievement.

When we choose

Schwartz compares the various choices that Americans
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 face in their daily lives by comparing the selection of choices at a supermarket
Supermarket
A supermarket, a form of grocery store, is a self-service store offering a wide variety of food and household merchandise, organized into departments...

 to the variety of classes at an Ivy League
Ivy League
The Ivy League is an athletic conference comprising eight private institutions of higher education in the Northeastern United States. The conference name is also commonly used to refer to those eight schools as a group...

 college.
Schwartz maintains that it is precisely so that we can focus on our own wants that all of these choices emerged in the first place.

How we choose

Schwartz describes that a consumer's strategy for most good decisions will involve these steps:
  1. Figure out your goal or goals. The process of goal-setting and decision making begins with the question: "What do I want?" When faced with the choice to pick a restaurant, a CD, or a movie, one makes their choice based upon how one would expect the experience to make them feel, expected utility. Once they have experienced that particular restaurant, CD or movie, their choice will be based upon a remembered utility. To say that you know what you want, therefore, means that these utilities align. Nobel Prize
    Nobel Prize
    The Nobel Prizes are annual international awards bestowed by Scandinavian committees in recognition of cultural and scientific advances. The will of the Swedish chemist Alfred Nobel, the inventor of dynamite, established the prizes in 1895...

     winning psychologist Daniel Kahneman
    Daniel Kahneman
    Daniel Kahneman is an Israeli-American psychologist and Nobel laureate. He is notable for his work on the psychology of judgment and decision-making, behavioral economics and hedonic psychology....

     and his colleagues have shown that what we remember about the pleasurable quality of our past experiences is almost entirely determined by two things: how the experiences felt when they were at their peak (best or worst), and how they felt when they ended.
  2. Evaluate the importance of each goal. Daniel Kahneman and Amos Tversky
    Amos Tversky
    Amos Nathan Tversky, was a cognitive and mathematical psychologist, a pioneer of cognitive science, a longtime collaborator of Daniel Kahneman, and a key figure in the discovery of systematic human cognitive bias and handling of risk. Much of his early work concerned the foundations of measurement...

     have researched how people make decisions and found a variety of rules of thumb that often lead us astray. Most people give substantial weight to anecdotal evidence, perhaps so much so that it cancels out expert evidence. The researchers called it the availability heuristic
    Availability heuristic
    The availability heuristic is a phenomenon in which people predict the frequency of an event, or a proportion within a population, based on how easily an example can be brought to mind....

     describing how we assume that the more available some piece of information is to memory, the more frequently we must have encountered it in the past. Salience will influence the weight we give any particular piece of information.
  3. Array the options. Kahneman and Tversky found that personal "psychological accounts" will produce the effect of framing the choice and determining what options are considered as subjects to factor. For example, an evening at a concert could be just one entry in a much larger account, of say a "meeting a potential mate" account. Or it could be part of a more general account such as "ways to spend a Friday night". Just how much an evening at a concert is worth will depend on which account it is a part of.
  4. Evaluate how likely each of the options is to meet your goals. People often talk about how "creative accountants can make a corporate balance sheet look as good or bad as they want it to look." In many ways Schwartz views most people as creative accountants when it comes to keeping their own psychological balance sheet.
  5. Pick the winning option. Schwartz argues that options are already attached to choices being considered. When the options are not already attached, they are not part of the endowment and choosing them is perceived as a gain. Economist Richard Thaler
    Richard Thaler
    Richard H. Thaler is an American economist and the Ralph and Dorothy Keller Distinguished Service Professor of Behavioral Science and Economics at the University of Chicago Booth School of Business...

     provides a helpful term sunk costs.
  6. Modify goals. Schwartz points out that later, one uses the consequences of their choice to modify their goals, the importance assigned to them, and the way future possibilities are evaluated.


Schwartz relates the ideas of psychologist Herbert Simon
Herbert Simon
Herbert Alexander Simon was an American political scientist, economist, sociologist, and psychologist, and professor—most notably at Carnegie Mellon University—whose research ranged across the fields of cognitive psychology, cognitive science, computer science, public administration, economics,...

 from the 1950s to the psychological stress that most consumers face today. He notes some important distinctions between, what Simon termed, maximizers and satisficers. A maximizer is like a perfectionist
Perfectionism (psychology)
Perfectionism, in psychology, is a belief that a state of completeness and flawlessness can and should be attained. In its pathological form, perfectionism is a belief that work or output that is anything less than perfect is unacceptable...

, someone who needs to be assured that their every purchase or decision was the best that could be made. The way a maximizer knows for certain is to consider all the alternatives they can imagine. This creates a psychologically daunting task, which can become even more daunting as the number of options increases. The alternative to maximizing is to be a satisficer. A satisficer has criteria and standards, but a satisficer is not worried about the possibility that there might be something better. Ultimately, Schwartz agrees with Simon's conclusion, that satisficing
Satisficing
Satisficing, a portmanteau "combining satisfy with suffice", is a decision-making strategy that attempts to meet criteria for adequacy, rather than to identify an optimal solution...

is, in fact, the maximizing strategy.

Why we suffer

Schwartz integrates various psychological models for happiness showing how the problem of choice can be addressed by different strategies. What is important to note is that each of these strategies comes with its own bundle of psychological complication.
  • Choice and Happiness. Schwartz discusses the significance of common research methods that utilize a Happiness Scale
    Happiness economics
    Happiness economics is the quantitative study of happiness, positive and negative affect, well-being, quality of life, life satisfaction and related concepts, typically combining economics with other fields such as psychology and sociology. It typically treats such happiness-related measures,...

    . He sides with the opinion of psychologists David Myers and Robert Lane, who independently conclude that the current abundance of choice often leads to depression
    Depression (mood)
    Depression is a state of low mood and aversion to activity that can affect a person's thoughts, behaviour, feelings and physical well-being. Depressed people may feel sad, anxious, empty, hopeless, helpless, worthless, guilty, irritable, or restless...

     and feelings of loneliness. Schwartz draws particular attention to Lane's assertion that Americans are paying for increased affluence and freedom with a substantial decrease in the quality and quantity of community
    Community
    The term community has two distinct meanings:*a group of interacting people, possibly living in close proximity, and often refers to a group that shares some common values, and is attributed with social cohesion within a shared geographical location, generally in social units larger than a household...

    . What was once given by family, neighborhood and workplace now must be achieved and actively cultivated on an individual
    Individual
    An individual is a person or any specific object or thing in a collection. Individuality is the state or quality of being an individual; a person separate from other persons and possessing his or her own needs, goals, and desires. Being self expressive...

     basis. The social fabric is no longer a birthright
    Birthright
    Birthright is a term that refers to something that is acquired or inherited at birth. It may further refer to:- Ancient and modern Law :* primogeniture, rights of the firstborn* birthright citizenship- Literature :...

     but has become a series of deliberated and demanding choices. Schwartz also discusses happiness with specific products. For example, he cites a study by Sheena Iyengar
    Sheena Iyengar
    Sheena Iyengar is the inaugural S.T. Lee Professor of Business in the Management Division at Columbia Business School and the Research Director at the Jerome A. Chazen Institute of International Business. She is known for her research on choice....

     of Columbia University and Mark Lepper of Stanford University who found that when participants were faced with a smaller rather than larger array of chocolates, they were actually more satisfied with their tasting.
  • Freedom or Commitment. Schwartz connects this issue to economist Albert Hirschman's research into how populations respond to unhappiness: they can exit the situation, or they can protest and voice their concerns. While free-market governments give citizens the right to express their displeasure by exit, as in switching brands, Schwartz maintains that social relations are different. Instead, we usually give voice to displeasure, hoping to project influence on the situation.
  • Second-Order Decisions. Law professor Cass Sunstein
    Cass Sunstein
    Cass R. Sunstein is an American legal scholar, particularly in the fields of constitutional law, administrative law, environmental law, and law and behavioral economics, who currently is the Administrator of the White House Office of Information and Regulatory Affairs in the Obama administration...

     uses the term "second-order decisions" for decisions that follow a rule. Having the discipline to live "by the rules" eliminates countless troublesome choices in one's daily life. Schwartz shows that these second-order decisions can be divided into general categories of effectiveness for different situations: presumptions, standards, and cultural codes. Each of these methods are useful ways people use to parse the vast array of choices they confront.
  • Missed Opportunities. Schwartz finds that when people are faced with having to choose one option out of many desirable choices, they will begin to consider hypothetical trade-offs. Their options are evaluated in terms of missed opportunities instead of the opportunity's potential. Schwartz maintains that one of the downsides of making trade-offs is it alters how we feel about the decisions we face; afterwards, it affects the level of satisfaction we experience from our decision. While psychologists have known for years about the harmful effects of negative emotion
    Emotion
    Emotion is a complex psychophysiological experience of an individual's state of mind as interacting with biochemical and environmental influences. In humans, emotion fundamentally involves "physiological arousal, expressive behaviors, and conscious experience." Emotion is associated with mood,...

     on decision making, Schwartz points to recent evidence showing how positive emotion has the opposite effect: in general, subjects are inclined to consider more possibilities when they are feeling happy.

See also

  • Analysis paralysis
    Analysis paralysis
    The term "analysis paralysis" or "paralysis of analysis" refers to over-analyzing a situation, so that a decision or action is never taken, in effect paralyzing the outcome. A decision can be treated as over-complicated, with too many detailed options, so that a choice is never made, rather than...

  • Collaborative filtering
    Collaborative filtering
    Collaborative filtering is the process of filtering for information or patterns using techniques involving collaboration among multiple agents, viewpoints, data sources, etc. Applications of collaborative filtering typically involve very large data sets...

  • Choice theory
    Choice theory
    This article is about choice theory in psychology and education. For choice theory in economics, see rational choice theory.The term choice theory is the work of William Glasser, MD, author of the book so named, and is the culmination of some 50 years of theory and practice in psychology and...

  • Consumer psychology
  • Consumerism
    Consumerism
    Consumerism is a social and economic order that is based on the systematic creation and fostering of a desire to purchase goods and services in ever greater amounts. The term is often associated with criticisms of consumption starting with Thorstein Veblen...

  • Cultural evolution
  • Decision theory
    Decision theory
    Decision theory in economics, psychology, philosophy, mathematics, and statistics is concerned with identifying the values, uncertainties and other issues relevant in a given decision, its rationality, and the resulting optimal decision...

  • Decision making
    Decision making
    Decision making can be regarded as the mental processes resulting in the selection of a course of action among several alternative scenarios. Every decision making process produces a final choice. The output can be an action or an opinion of choice.- Overview :Human performance in decision terms...

  • Information overload
    Information overload
    "Information overload" is a term popularized by Alvin Toffler in his bestselling 1970 book Future Shock. It refers to the difficulty a person can have understanding an issue and making decisions that can be caused by the presence of too much information...

  • Overchoice
    Overchoice
    Overchoice, also referred to as "choice overload", is a term describing a problem facing consumers in the postindustrial society: too many choices. The term was first introduced by Alvin Toffler in his 1970 book, Future Shock....

  • Shopping
    Shopping
    Shopping is the examining of goods or services from retailers with the intent to purchase at that time. Shopping is an activity of selection and/or purchase. In some contexts it is considered a leisure activity as well as an economic one....

  • Social psychology
    Social psychology
    Social psychology is the scientific study of how people's thoughts, feelings, and behaviors are influenced by the actual, imagined, or implied presence of others. By this definition, scientific refers to the empirical method of investigation. The terms thoughts, feelings, and behaviors include all...

  • Rational choice theory
    Rational choice theory
    Rational choice theory, also known as choice theory or rational action theory, is a framework for understanding and often formally modeling social and economic behavior. It is the main theoretical paradigm in the currently-dominant school of microeconomics...

  • Tyranny of small decisions
    Tyranny of small decisions
    The tyranny of small decisions refers to a phenomenon explored in an essay by that name, published in 1966 by the American economist Alfred E. Kahn. The article describes a situation where a number of decisions, individually small in size and time perspective, cumulatively result in an outcome...

  • Buridan's Ass
    Buridan's ass
    Buridan's ass is an illustration of a paradox in philosophy in the conception of free will.It refers to a hypothetical situation wherein an ass is placed precisely midway between a stack of hay and a pail of water...



External links

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