BROUGHT TO YOU BY

Are you leaving alpha on the table?

Gaining access to the right financial intelligence platform can make or break your quarter.

Sign up for a trial today to beat FOMO and move faster than the market.n

THE PARADOX OF CHOICE

What are we eating today?

Ever found yourself caught up in a Netflix browsing marathon, floundering in a sea of takeaway options, or navigating the risky quest of picking a birthday gift for your better half?

Evidently, having too many choices can cause stress instead of making us happy.

Is it possible to have “too much” freedom?

Too much choice

In his book “The Paradox of Choice,” prominent psychologist Barry Schwartz argues that while choice is a desirable thing, too many options spur anxiety and paralysis, not liberation.

Schwartz proposes that this abundance can yield unhappiness and self-doubt, generating decreased satisfaction and, ultimately, lower quality of life.

He questions contemporary societies, claiming that an endless array of choices, ranging from material goods like smartphones, clothes, and cars to decisions about schooling, hobbies, and social connections, may not be entirely beneficial.

This predicament is fairly common in the Western world. What’s notable about modern society is that having a wide range of possibilities is considered an advantage.

Think of the possibilities:

• Feeling hungry? Order in or check out the top 10 places to eat nearby.
• Lonely? Swipe right seemingly infinitely on dating apps.
• Need a vacation? Browse through hundreds of top-recommended destinations.

The list goes on. Just pick one!

Sounds easy, right?

Choice paralysis

In the mid-’90s, Dr. Sheena S. Iyengar, a Professor of Business at Columbia Business School’s Management Department, looked into that issue.

She carried out the renowned customer behavior “jam study,” which catapulted her into the spotlight in social science and corporate circles.

Her research team set up a stand with either 24 or 6 Wilkin & Sons jam samples.

While 60% of customers stopped at the larger display, only 3% made a purchase. In contrast, 40% stopped at the smaller display, with 30% purchasing. It proved that too many options led to indecision and fewer sales.

Fewer options lower expectations, making near-perfect results satisfying.

Ironically, while abundant choices are supposed to enhance our lives, Iyengar finds it often results in greater dissatisfaction as consumers.

Explosion of choice

We live in times where you can be whoever you want, do nearly whatever you please, and buy almost anything your heart desires.

It’s liberating and joyful – a real privilege, considering there are places where such choices are impossible or more limited.

However, Schwartz shares, “As the number of choices grows further, the negatives escalate until we become overloaded. At this point, choice no longer liberates but debilitates. It might even be said to tyrannize.”

In one lecture, Schwartz delves into the modern world’s autonomy, allowing us to live as we please. He recounts how, decades ago, the typical plan involved securing a job, marrying, and starting a family, with the main question being with whom.

Lately, the choice spectrum has surged.

He now assigns 20% less work for his students, not due to less intelligent or diligent students, but because they’re preoccupied with balancing career ambitions, education, relationships, and family.

Add in life’s countless smaller daily decisions, and it’s no wonder focus wavers.

Dive deeper

Let us know your thoughts on the Paradox of Choice — is the tyranny of choice real or just academic conjecture?

And, if you want to learn more about how to deal with having too many options, read “The Paradox of Choice” by Barry Schwartz.