The Paradox of Choice – Barry Schwartz

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The Paradox of Choice – Barry Schwartz

I found this book when listening to a Tim Ferris Podcast (Episode 686 to be exact) where it was mentioned under the premise of decision fatigue.

I found myself relating to this book much more than I expected – by instinct I am a pure Maximizer which affects me when I need to make fast decisions or decisions that have lots of options.

Below are some of my main takeaways and sections of the book that resonated with me:

The Paradox
Increased Choices with Modern Day
Maximizer VS Satisfier
The Effect of Comparison
Opportunity Costs
Opting for Constraints
The Painful Aspect of Adaptation
Post Decision and Anticipated Regret
What Should We Do?

The Paradox:

We are faced with an overwhelming amount of choices daily (from the grocery store to clothing stores).
We live under the impression that the more choices we have the better (not always the case).
Living in a world with an abundance of choices can cause objectively better lives and choices although maybe not subjectively better.

Increased Choices with Modern Day:

Throughout history our default options in life (religion, relationships, entertainment) have been very powerful but today this is not the case. We are liberated from the oppressive defaults although also burdened by the added responsibility of choice.
- Ex.) At one time everyone watched the same shows on TV for entertainment, today we have endless choices of what to watch on top of what streaming services to use…
Our social fabric was once a birthright but is now a set of deliberate choices of who we want to spend time with.
The demand to create an identity with all of our choices can be more overwhelming than the demand to accept an identity.

Maximizer VS Satisficer: (Chapter 4)

MAXIMIZER:

Someone who seeks to make the best possible decision.
- They will examine all options (at least attempt to) and try to choose the very best one.
When there are lots of options (always is) it can be almost impossible to actually examine all of them, leading to the choice only being a local maximum rather than a global.
- This can be very time consuming and mentally exhausting.
Having a maximizing mentality is often corelated with increased stress, dissatisfaction, and analysis paralysis.

SATISFICER:

Someone who seeks the option that is good enough and will stop examining options when one meets their criteria.
They are content when an option meets their criteria so less time and mental energy is used – leading to greater satisfaction and less regret.
High standards are still required – focus on the standards rather than what is the best.

The Effect of Comparison:

How do you feel when you get an objectively bad grade but then find out you did good relative to your classmates?
- It’s not the objective grade that matters most to your internal satisfaction but instead the comparison to others.
At one time we didn’t have access to information outside our social circle causing our comparisons to other to be quite limited.
- Today we have access to anyone meaning we are able to compare ourselves to anyone and be less satisfied with the lives we live.
Comparison tends to affect Maximizers much more than Satisficers.

Opportunity Costs:

When comparing options with tradeoffs, we feel less good about the option we choose than we would have if the other options hadn’t been there.
Opportunity costs increase with every new choice option.
Internally when we make a choice we are “loosing” all the positive aspects of the other choices.
- This can even overpower the positive feeling of the purchase in some situations.

Opting for Constraints:

Opting for constraints (ex. marriage) can be a form of liberation while freedom can be a form of enslavement
- Constraints help to limit the choices we pay attention to on a daily basis
Second Order Decisions help us in setting up rules for when to or not to decide
- Ex.) Deciding to be committed to your significant other will free you from lots of choices related to other relationships

The Painful Aspect of Adaptation:

Adaptation causes our subjective satisfaction/happiness of our choice to dwindle over time until we take it for granted.
- This will have more of a negative effect on maximizers than satisfiers (as maximizers have occurred more of a cost to making the decision).
Adaptation is positive when living in a world with more pain than happiness.
Adaptation is negative when living in a world with more happiness/comfort than pain.
- luxury car or the 10,000 square foot home will not maintain to provide the same levels of satisfaction as they did originally
Gratitude can help combat the impacts of adaptation

Post Decision and Anticipated Regret:

Post decision regret is a lot like buyers remorse.
Anticipated regret is experiencing the regret you may feel in the future and can lead to paralysis of decision making.

What Should We Do?

Choose when to choose.
- Not every decision requires extensive thought.
- For some decisions it is ok to go with the default or good-enough option.
Adopting a satisficing mindset can often lead to greater happiness.
- Satisficers are less dependent on the comparison to other options.
- It’s not the objective result of a decision that matters most but the subjective result.
Manage anticipation and expectations.
Limit options
- Some of us have an unwritten rule to only have 2 drinks per night – we should also set this up for other choices (only going to 2 stores prior to buying)
Create a gratitude practice.
- Thinking of how good things are compared to how they could have been helps to reduce the effects of adaptation.
Unless you are truly dissatisfied, buy what you always buy.
- Don’t worry about the new and improved, it will find you – no need to spend time researching.
Make an effort to ensure all of your choices are final.
- When choices are final your brain works to justify your purchase leading to higher level of satisfaction.
- When choices have the option to be reversed this does not occur and can lead to you questioning your decision – limiting your satisfaction.

September 10, 2023 Pete VanCamp Readings The Paradox of Choice