Posts Tagged ‘decision making’

Why choice is bad

One of the great regular TEDTalks contributors, Barry Schwartz, held a lecture about why the amount of choice we have in our lives is a bad thing. I just found the lecture on Youtube and while the TEDTalk was already held in July 2005, I think it’s still valuable.

Why choice makes  people miserable:

  1. Regret and anticipated regret
  2. Opportunity costs
  3. Escalation of expectations
  4. Self-blame

The best quote: “The secret to happiness is … low expectations.” (Barry Schwartz, 2005)

Watching this video should be life-changing for marketeers and will change the way they approach portfolio management and the choice (=responsibility) they give consumers: » More: Why choice is bad

Comments Off on Why choice is bad

Posted in Psychology

Tags:

Lack of sleep helps make optimistic decisions

Sleep deprivation makes flipping coin look like good odds

Sleep deprivation makes flipping coin for profit look like good odds

Entrepreneurship is about taking risks. Calculated risks. Top managers take big decisions every day. They have busy schedules and some only sleep a few hours a day. Research now shows that sleep-deprivation makes decision making easier. Not better though. Ever seen a CEO that always presents optimistic plans? It might be because of his lack of sleep.

According to an article in the Journal of Neuroscience described on physorg.com, sleep-deprived individuals in a study “tended to make choices that emphasized monetary gain, and were less likely to make choices that reduced loss”. The study is the first that shows that lack of sleep impacts the way the brain assesses economic value, increasing sensitivity to positive consequences and decreasing  sensitivity to possible negative consequences of decisions. » More: Lack of sleep helps make optimistic decisions

Comments Off on Lack of sleep helps make optimistic decisions

Posted in Corporate culture, Psychology

Tags:

Choice as a detractor

Don't make jam of your portfolio

Don't make jam of your portfolio

A friend once told me a story of an experiment conducted in a supermarket. In two different time periods the supermarket offered two kinds of portfolios of jam. In the first setup the shop offered a number of shelves  with numerous kinds of jam. Different fruits, different pot sizes and different brands. Many choices. In the second setup the supermarket  offered a single large shelf of strawberry jam of brand x in one standard pot size. One choice. What was the result? Contrary to expectations, more jam was sold in the single strawberry jam setup.

Why? Because people hate complicated choices. » More: Choice as a detractor

Comments Off on Choice as a detractor

Posted in Experience, Psychology, Tools and strategies

Tags: