Title: THE PARADOX OF CHOICE
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2THE PARADOX OF CHOICE
- Barry Schwartz
- Collaborators
- Andrew Ward
- Sonja Lyubomirsky
- Katherine White
- Darrin Lehman
- John Monterosso
- Jane Gillham
- Jamin Halberstadt
- Sheena Sethi-Iyengar
3This Talk
4This Talk
- Choice and satisfaction
- Freedom, choice, wealth, and welfare
5This Talk
- Choice and satisfaction
- Freedom, choice, wealth, and welfare
- What to do about food
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7- Is this good news or bad news?
YES!
8285 Brands of Cookies
110 Televisions
75 Iced Teas
6.5 Million Stereo Systems!!
175 Salad Dressings
40 Toothpastes
275 Cereals
30 VCRs and 50 DVD Players
9- Phone service
- Local, long distance, cellular
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12- Health Care
- Direct marketing of drugs
- Patient autonomy
13 14 15- Physical appearance
- Botox
- Cosmetic Surgery
16- Marital and family arrangements
17 18MAXIMIZING SATISFICING
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20Thus a paradox Freedom of choice
becomes tyranny of choice
21Americans are richer than ever before
22Americans are richer than ever before Americans
are sadder than ever before
23Americans are richer than ever before Americans
are sadder than ever before Why?
24Americans are richer than ever before Americans
are sadder than ever before Why? Too much
choice is part of the answer
25What Too Much Choice Does
- Jams in a gourmet food store
26What Too Much Choice Does
- Jams in a gourmet food store
- Chocolates in the laboratory
27What Too Much Choice Does
- Jams in a gourmet food store
- Chocolates in the laboratory
- Snacks, soft drinks and beer in convenience
stores
28What Too Much Choice Does
- Jams in a gourmet food store
- Chocolates in the laboratory
- Snacks, soft drinks and beer in convenience
stores - 401(k) participation in the workplace
29- With so much choice, people may do better
-
30- With so much choice, people may do better
- but they feel worse
31Why Choice Makes People Miserable
- 1. Regret and anticipated regret
32Why Choice Makes People Miserable
- 1. Regret and anticipated regret
- 2. Opportunity costs
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36- Offer participants 2 or a good pen 75
choose pen
Offer participants 2, or 1 good pen, or 2
cheaper pens 45 choose either pen
37Where to go on vacation? 1. Beaches of the
Caribbean
38Where to go on vacation? 1. Beaches of the
Caribbean 2. Golf at Hilton Head
39Where to go on vacation? 1. Beaches of the
Caribbean 2. Golf at Hilton Head 3. Awesome
power of the Rockies
40Where to go on vacation? 1. Beaches of the
Caribbean 2. Golf at Hilton Head 3. Awesome
power of the Rockies 4. Culture of New York
41Where to go on vacation? 1. Beaches of the
Caribbean 2. Golf at Hilton Head 3. Awesome
power of the Rockies 4. Culture of New
York Choose your Number 1
42Where to go on vacation? 1. Beaches of the
Caribbean 2. Golf at Hilton Head 3. Awesome
power of the Rockies 4. Culture of New
York Choose your Number 1 Go, have a good time,
but
43Why couldnt I have found a place with beautiful
beaches and great golf, and awesome power, and
culture
44The lesson of opportunity costs
45The lesson of opportunity costs The more
options you offer, the less attractive each of
them will seem
46Why Choice Makes People Miserable
- 1. Regret
- 2. Opportunity costs
- 3. Escalation of expectations
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50- The lesson of expectations
- What matters to satisfaction is whether
experience meets expectations or not
51Why Choice Makes People Miserable
- 1. Regret
- 2. Opportunity costs
- 3. Escalation of expectations
- 4. Self-blame
52Choice and Satisfaction Conclusions
- As options increase, selection decreases
53Choice and Satisfaction Conclusions
- As options increase, selection decreases
- As options increase, satisfaction decreases
54 Freedom, choice, wealth, and welfare Implicati
ons of the research
55The Official Dogma
- Maximize welfare, not wealth
- This means maximize freedom
- This means maximize choice
- Markets maximize freedom
- Wealth enhances freedom
- More wealth means more choice
- More choice means more freedom
- More freedom means more welfare
- NOT!!
56Libertarian Paternalism
- And car insurance
- And organ donation
- Pay attention to default options (the
paternalism part) - But usually let people opt out (the libertarian
part)
57What to Do About Food
- Experience goods but there are too many to
experience - Credence goods but informational asymmetry has
become the rule - Is the governments role just to insure safety,
or is it also to promote welfare? - If promoting welfare is part of the mission,
barriers to entry might well be part of the policy
58What to Do About Food (cont.)
- The Consumer Reports problem
- Principle of the flat maximum
- The Zagat Guide model selective review and
rating - But how can a federal agency possible do this?
- Perhaps in partnership with private, non-profit
evaluation services
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