How to Make Better Choices (with Barry Schwartz)
Psychologist Barry Schwartz, author of "Choose Wisely," discusses making tough life choices. He argues against quantifying happiness and rational choice theory, advocating for a thoughtful, human approach focused on understanding purpose and accepting uncertainty.
Deep Dive Analysis
12 Topic Outline
Introduction to the challenge of making big life decisions
Defining good decisions: Maximizers vs. Satisficers
The modern dilemma: Overwhelm of choice and information
Critique of Rational Choice Theory and maximizing utility
Dangers of quantifying complex decisions: The Vietnam War example
Examining Daniel Kahneman's 'objective happiness' approach
Why atomizing happiness into moments is problematic
A thoughtful approach to decision-making: Self-understanding and purpose
Navigating conflicts between different life purposes
Applying wise decision-making to personal life transitions
The appropriate role of spreadsheets in complex decisions
Embracing uncertainty and imperfection in life choices
9 Key Concepts
Maximizers
These are people who believe their task is to get the absolute best out of any situation they are in and constantly look for the optimal choice, often leading to endless searching and potential dissatisfaction.
Satisficers
These individuals aspire to 'good enough' standards. As soon as they find something that meets their criteria, they stop looking, making decision-making much easier and often more satisfying.
Rational Choice Theory
Originating from economics, this theory suggests a good decision maximizes 'utility' by calculating the 'expected utility' for every option (value of outcome multiplied by likelihood of outcome) and choosing the highest, treating decisions like casino bets.
Utility (in economics)
In the context of rational choice theory, utility is whatever an individual subjectively values or deems 'worth what' to them. The goal is to make choices that maximize this personal value.
Objective Happiness (Kahneman's view)
This approach attempts to turn a subjective measure of happiness into an objective one by having people list activities and rate their satisfaction for each, with the idea that the sum of these moments constitutes total happiness.
Eudaimonia (Aristotle's view)
Referred to as 'real happiness,' eudaimonia is about living a good life, achieving, progressing, and engaging in meaningful activities. This often involves suffering or discomfort in service of a larger, significant goal.
Understanding (in wise decision-making)
This involves comprehending both oneself and the environment one is about to enter. It means using this understanding, which is always correctable, to make intelligent guesses rather than relying solely on inappropriate quantification.
Purpose (in wise decision-making)
This concept encourages reflection on 'what's it for' regarding a decision, such as college or a job. It helps define personal standards and evaluate options, acknowledging that one's ideas about purpose can evolve.
Opportunity Cost
An economic idea highlighting that whenever one chooses to do one thing, they inherently give up the opportunity to do many other things. This implies that every decision comes with a price in terms of foregone alternatives.
9 Questions Answered
According to Barry Schwartz, a good decision is one that helps you achieve things that enable you to live a good life.
Maximizers constantly seek the absolute best outcome in any situation, while satisficers aim for 'good enough' and stop searching once their standards are met, making decision-making easier.
More options can raise people's standards for what counts as a good result, leading to feelings of failure or disappointment if the outcome isn't 'perfect,' even if it's very good.
The formula involves maximizing utility by calculating the 'expected utility' (value of outcome multiplied by likelihood) for each option, similar to casino bets. It's problematic because most life decisions cannot be accurately quantified with numbers for value or likelihood.
McNamara tried to industrialize the war by applying cost-benefit calculations and using enemy casualties as a proxy for winning, which led to a strategy focused on maximizing blood independent of strategic advantage.
They argue that atomizing happiness into moments (like rating satisfaction for individual activities) oversimplifies true happiness, which Aristotle called 'eudaimonia' – living a good and meaningful life, often involving suffering for larger objectives.
One should ask 'Why am I going to college? What's it for for me? What kind of a person am I? What kind of a person do I aspire to become?' to align choices with personal values and desired life trajectory.
One must be reflective and open to changing ideas about what matters, negotiating with oneself and having eyes open to the trade-offs, understanding that there will always be aspects of life given up.
Spreadsheets are useful for identifying the important aspects of a decision and the available options, ensuring nothing crucial is ignored, but they should not be filled with numbers to make the decision automatically, as that's a fantasy.
11 Actionable Insights
1. Embrace “Good Enough” Mindset
Aspire to “good enough” rather than “the best” when making decisions, stopping your search as soon as an option meets your standards. This approach simplifies decision-making and prevents feelings of failure that arise from endless optimization in a world of abundant choices.
2. Clarify Personal Purpose & Aspirations
Before evaluating options for major life decisions, ask yourself “Why am I doing this?”, “What kind of person do I aspire to become?”, and “What do I want to care about?”. This self-reflection helps define your standards and ensures choices align with your desired life trajectory and personal growth.
3. Reject Pure Utility Maximization
Do not solely rely on the rational choice theory of maximizing utility by quantifying outcomes and probabilities for most life decisions. This method is disastrous because real-life choices are rarely like casino gambles and cannot be accurately reduced to numbers.
4. Prioritize Meaning Over Momentary Happiness
Focus on “eudaimonia” – living a good, meaningful life, achieving, and doing things of significance – rather than just seeking momentary “smiley face” happiness. True happiness often involves suffering in service of larger objectives, which focusing on “atoms of happiness” can obscure.
5. Cultivate Reflective Decision-Making
Be a thoughtful and reflective person in your decision-making, rather than slavishly pursuing quantification when it’s inappropriate. This allows you to learn from past experiences and adapt your evaluations for future decisions, recognizing that choices are rarely final.
6. Accept Uncertainty and Imperfection
Recognize and accept that most significant decisions are not “one and done,” will involve inherent uncertainty, and will never be perfect. This mindset fosters adaptability and allows you to continuously reflect and adjust your life and values to make the chosen path a better one over time.
7. Negotiate Conflicting Life Purposes
Acknowledge that different life purposes and desires, such as career ambition and family responsibilities, can conflict and require internal negotiation. Be open to resetting your sights and adapting your goals to prioritize what truly matters for your overall well-being.
8. Cultivate Self & World Understanding
Strive for a deep understanding of yourself – your standards, values, and aspirations – and the relevant environment before making decisions. This understanding, though difficult and imperfect, is crucial for making intelligent guesses and evaluating if an option is truly “good for you.”
9. Allocate Decision Effort Proportionately
Devote time, effort, and reflection to decisions in proportion to their actual importance in your life. This prevents excessive rumination over minor choices while ensuring adequate consideration for major, life-altering decisions.
10. Recognize Inherent Opportunity Costs
Understand and accept that every decision you make comes with opportunity costs, meaning you will inevitably miss out on other potential experiences or outcomes. This perspective helps manage expectations and reduces disappointment by acknowledging the aspects of life you’re leaving behind.
11. Structure Decisions, Avoid Numeric Fantasy
Use tools like spreadsheets to identify and structure the important aspects and available options of a decision, ensuring nothing crucial is overlooked. However, avoid filling cells with numbers and expecting the decision to be automatically made, as that’s a fantasy.
5 Key Quotes
You could spend your whole life looking for the best pair of jeans or, you know, the best restaurant in the New York metropolitan area or what have you, and you'd end up dying naked and starving.
Barry Schwartz
The press to be able to quantify pushes you in the direction of measuring what you can and pretending that what you measure is what you care about.
Barry Schwartz
No decision is final. So what we're suggesting is that rational people are thoughtful people. They are reflective people. And they don't slavishly pursue quantification when quantification is inappropriate.
Barry Schwartz
Any decision worth thinking about for more than five minutes, you can virtually guarantee, will not be a perfect decision. It may be the right decision, but it's not a perfect decision.
Barry Schwartz
I think spreadsheets are extremely useful as long as you don't fill in the cells.
Barry Schwartz