Too many choices may not be good
A common assumption in economics is that people are not made worse off by having more choices. Adding a choice gives people another option which they can choose if they like better than the existing options, or reject if they don’t. Thus another option should be (at least weakly) beneficial.
However, Physorg reports on a recent series of experiments which showed that having to make complicated choices can worsen people’s performance in subsequent tasks. For example, in experiments, people who had to make choices among many options performed worse, on average, on subsequent math tests compared to people who made simpler choices prior to the math tests.
If true, it seems that people’s concentration is also a scarce resource. Making a complicated choice uses some of this up, so less is available for subsequent thinking. Obviously at some point the resource is replenished, by resting or sleeping I guess. There are some interesting implications for businesses in terms of product design, e.g. having a smaller product range with less variety may be preferable to broad range with lots of choices.
(HT: Signal vs Noise)
2 Comments
I hate shopping, so these results don’t surprise me at all.
This is one reason I like owning Macs. You don’t have a zillion choices. Similarly, I buy the least stylish, most stripped down cell phones possible. I can’t be bothered wasting time comparing features. It makes and receives calls? Great! That’s all I want.
Funny, I had a similar situation when I happened to find myself in a coffee shop not too long ago. To summarize: it took me forever to figure out what I wanted and by the time I figured out what I did want, I didn’t have enough time to wait in line and buy that cup of coffee! I’m useless - I know. Anyway, if this phenomenon is more prevalent than not, we might have to rethink the microeconomic assumption that consumers are capable of making utility maximizing decisions between two baskets of goods… I’m going to go try and buy some coffee now. Wish me luck!