Episode Details

I know you have a lot of options for what to listen to, and I'm glad you chose The Brainy Business. Especially because (as you'll hear about on today's episode), due to the paradox of choice, having too many options and decisions can leave people paralyzed instead of empowered. That paralysis can make it so people don't make any decision at all, so you stick with the status quo of scrolling Instagram or playing a game on your phone. With over 2 million podcasts out there to compete with (plus all the YouTube channels, Netflix, and other streaming services, music options like Spotify and Pandora), plus games and email, and...well you get the idea...There are a lot of options out there that could have made tuning in a very complicated choice. In today's episode, I will tell you all about the paradox of choice: what it is, and why it matters for you in life and in business (including some tips for creating and presenting options to your current and potential customers). Show Notes:

• [00:06] Today's behavioral economics foundations episode is about the paradox of choice.
• [03:02] As I mentioned in the introduction, the paradox of choice is a term and concept popularized by Barry Schwartz, whose book and popular TED talk have been shared around the world.
• [04:42] When presented with too many choices (like we have in most societies today) people become paralyzed, stressed, and feel stuck. It can cause mental anguish and regret. Some choices are good, but too much and we are definitely worse off.
• [05:24] The really important thing to know is that adding some choice is important. Because we humans can't value one-off items, having at least some choice and comparison helps us to make a decision and feel good about it, but too many and we get overwhelmed.
• [07:15] When there are too many choices, our brains get overloaded.
• [09:41] It is easier to stick with what we have always done than to look for something that may or may not be better.
• [11:42] Your subconscious is dealing with this sort of letdown constantly. It can get very taxing over time and it's no wonder our brains rebel at the idea of evaluating too many options.
• [13:14] In a world where there is always another option, always a list of potential matches and the feeling that (much like the pair of jeans) perfection is "just one search away"...it can be hard to settle even when the choice is something you would be incredibly happy with. That constant thought of "what if" can be too much for many to bear.
• [13:53] Anticipated regret can have a huge impact on behavior. We want to choose wisely and, frustratingly, this pursuit of perfection (or even just a little bit better) can cause us to make worse decisions.
• [15:02] The important thing to know is that while it seems like lots of choice and infinite options would make us happier (increasing our freedom and wellbeing to use the terms from earlier) that just isn't how it works.
• [17:12] A maximizer is always looking for the best of the best. They want to make sure that they choose whatever is objectively the best there is every single time. That anyone else could look at and know that it is conclusively "the best choice".
• [17:28] Satisficers are people who find something that is "good enough" and feel satisfied with that choice. Once satisficers find something they are happy with, they are good to go and don't necessarily dwell on "what might have been" too much. Even if there was a better option out there you could have made, you are subjectively happy and therefore at peace with the decision.
• [20:04] For maximizers (like my husband), these details are vital pieces of information needed to make a decision, and for satisficers (like me), it is just too much to think about.
• [22:45] The first tip is to choose when to choose. If you only save the big evaluation for the really important stuff, it will help you have