The document discusses psychologist Barry Schwartz's views on the paradox of choice. It summarizes that while conventional wisdom holds that more choices lead to more freedom and happiness, Schwartz argues that an overabundance of choices can paradoxically lead to paralysis, less satisfaction, and decreased welfare. With too many options, people find it difficult to choose at all, have escalating expectations that are rarely met, and experience regret over alternative options they did not select from the overwhelming number of possibilities.

1. What Makes Us Happy?
Barry Schwartz on The Paradox of Choice
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2. The Official Dogma
The more choice people have, the more
freedom they have, and the more freedom
they have, the more welfare they have.
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3. Super Market
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4. Electronics Store
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5. Just for fun...
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6. Skit
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7. Skit
Well, we could do A, or we
could do B. A has benefits, and these risks,
B has benefits, and these risks. What do you
want to do?
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8. Skit
Well, we could do A, or we
could do B. A has benefits, and these risks,
B has benefits, and these risks. What do you
want to do?
Doc, What should I do?
Tuesday, July 3, 12

9. Skit
Well, we could do A, or we
could do B. A has benefits, and these risks,
B has benefits, and these risks. What do you
want to do?
Doc, What should I do?
Well, we could do A, or we
could do B. A has benefits, and these risks,
B has benefits, and these risks. What do you
want to do?
Tuesday, July 3, 12

10. Skit
Well, we could do A, or we
could do B. A has benefits, and these risks,
B has benefits, and these risks. What do you
want to do?
Doc, What should I do?
Well, we could do A, or we
could do B. A has benefits, and these risks,
B has benefits, and these risks. What do you
want to do?
If you were me, Doc, what would you do?
Tuesday, July 3, 12

11. Skit
Well, we could do A, or we
could do B. A has benefits, and these risks,
B has benefits, and these risks. What do you
want to do?
Doc, What should I do?
Well, we could do A, or we
could do B. A has benefits, and these risks,
B has benefits, and these risks. What do you
want to do?
If you were me, Doc, what would you do?
But I’m not you.
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12. Patient Autonomy
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13. Patient Autonomy
Shifting of burdens and responsibility from someone who
knows something
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14. Patient Autonomy
Shifting of burdens and responsibility from someone who
knows something
To somebody who knows nothing and is almost certainly
sick, thus not in the best shape to make decisions.
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15. What’s Bad
The second effect is that even if
we manage to overcome the
paralysis and make a choice, we With so many options to choose
end up less satisfied with the from, people find it very difficult to
result of the choice than we would choose at all. I'll give you one very
be if we had fewer options to dramatic example of this: a study that
choose from. And there are was done of investments in voluntary
several reasons for this. One of retirement plans. A colleague of mine
them is that with a lot of different got access to investment records
salad dressings to choose from, if from Vanguard, the gigantic mutual
you buy one, and it's not perfect -- fund company of about a million
and, you know, what salad employees and about 2,000 different
dressing is? -- it's easy to imagine workplaces. And what she found is
that you could have made a that for every 10 mutual funds the
different choice that would have employer offered, rate of
been better. And what happens is participation went down two percent.
this imagined alternative induces You offer 50 funds -- 10 percent
you to regret the decision you fewer employees participate than if
made, and this regret subtracts you only offer five. Why? Because
from the satisfaction you get out with 50 funds to choose from, it's so
Paradoxically: produces paralysis rather than liberation
of the decision you made, even if damn hard to decide which fund to
it was a good decision. The more choose that you'll just put it off until
options there are, the easier it is to tomorrow. And then tomorrow, and
regret anything at all that is then tomorrow, and tomorrow, and
disappointing about the tomorrow, and of course tomorrow
never comes. Understand that not
Escalation of Expectation
only does this mean that people are
going to have to eat dog food when
they retire because they don't have
enough money put away, it also
means that making the decision is so
hard that they pass up significant
Less satisfied with the result of choice
matching money from the employer.
By not participating, they are passing
up as much as 5,000 dollars a year
from the employer, who would
happily match their contribution. So
paralysis is a consequence of having
too many choices.You really want to
get the decision right if it's for all
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16. Paradoxically: produces paralysis rather than
liberation
Paralysis is a consequence of having too many choices
With too many choices, people find it harder to make a
choice
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17. Escalation of Expectation
With more choices, expectation will increase.
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18. Less satisfied with the result of choice
There will be better alternatives than the one you chose
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19. Why choice makes people miserable?
Regret and Anticipated Regret
Opportunity Cost
Escalation of expectations
Self-Blame
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20. The Official Dogma
The more choice people have, the more
freedom they have, and the more freedom
they have, the more welfare they have.
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21. The Official Dogma
The more choice people have, the more
freedom they have, and the more freedom
they have, the more welfare they have.
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22. Secret to Happiness
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23. Secret to Happiness
EXPECT LESS!
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24. Thank You!
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