Lec 7 Flashcards
Maximizngg
Vs
Satisficing
=> which wine would produce the OBJECTIVELY BETTER outcome
Working to find the “best” option / choice or item
=> ranges in how much effort you put in
Seeking good enough => be satisfactory
- find an option that meets certain standards (smth is satisfied, may not be optimal, as long as u find one, u are done)
=> Maximizer (more effort, likely get better bargain or features, smth better) but if that is not the goal, it becomes counter productive
Or do u want to be happy with it? (Subjective satisfaction)
Objective vs Subjective
Shirt: if there was an objective but it is “bad” but u like it, isn’t it a positive outcom
Subjective statistic cation generally key!
Especially in consumer purchase
Maximin is not optimal
Buying tv maximize vs satisfaction example
A: OK picture, low price
B: good picture, OK
price
C: good picture, high price, 120Hz
D: good picture, high price, 120 Hz, 3D ready
Satisficer: option B meets criteria, good enough, done (purchase it) - has looked at a few options and chosen 1
Maximizer: consider more options
=> perhaps weren’t aware of extra options, eg thought B was okay, but now C costs more (new feature of 120Hz) so options A and B have an extra Missing Feature!
Same concept with option D(psychological aspect - changes how the other options appear)
The Maximizer might go with option B at the end, but evaluated more options and views it / aware of the lacking of missing features. Might even overpay if they choose C (distracted into buying smth they don’t need - where is the criterion?)
Who is happier? The satisficer
Maximizing can be a problem
- consider more options => exaggerates problem of choice
- more options lead to more opportunity costs
- more potential trade offs - difficult (2 at the beginning compared to 5 later when considering more choices - more awareness of missing out)
- higher expectations => more potential regret (the best is pretty much the highest expectation)
Maximizing => job example
Major decision
- Schwartz: logic is the same whether big or small choice
- additional options could call attention to the things you’re missing out on
- awareness of missed opportunities and weighing trade-offs still apply if the goal is to be satisfied with what you decided
Choice overload effect
Redelmeier & Shaffer: doctors and treatment options
- Present case study to the doctors
- Give options (1 = new medication or refer to specialist, 2 = medication 1, medication 2, refer to specialist)
1 = 75% prescribed medication
2 = 50% referred to a specialist
75% was not split across the medication options (had to make a decision, so decided to pass it off to someone else - avoiding it)
Issue: more referral to specialist than needed
Avoiding => irrational influence
Reversible decisions
vs non reversible decisions
(Gilbert & Ebert)
Reversible: less satisfied on average
- more likely to focus on what you could get due to range of options
less likely to focus on positive aspects of your choice
- when you keep options open, you’re stuck in the stressful decision stage!
Non-reversible:
- might experience post-decision regret, but then generally start to move on
- rationalize the decision
- focus on positive aspects (remember endowment effect)
=> more satisfaction
Li et al: factors that mediate the effect of reversibility on satisfaction
Strong relationship bet. irreversibility and satisfac tion
- lower satisfaction with reversibility bc counterfactual thinking and tendency toward anticipating regret (the two mediators)
=> easier to think about the alternatives
Deliberation effect
(Dijksterhuis)
conscious thought = allowed time to think
unconscious thought = delay with distraction
=> choose a car based on either 4 or 12 factors
no significant difference between the C and U groups for 4 aspects (bc it is easier to think abt than 12)
but C thought produced worse performance for the 12 aspect complex judgment
=> shouldn’t careful thinking and decision making be good?
- we have difficulty processing a large amount of info effectively
- in the 12 aspect, too many options can cause us to pay attention to the wrong factors
Giving reasons for choice
Situation:
free choice of poster: art or funny
control - pick one
experimental - explain why you chose that specific one
What occurred after 2 weeks?
the control group would be more likely to use the poster they chose
=> giving reasons seemed to lead to worse decisions
=> less satisfaction with choice, therefore less likely to use the poster later
WHY? Shifted attention to factors that do not determine actual satisfaction
Happiness questions demo
the difference was the order of the questions.
asking how many dates first, makes you seem to weigh more of dating in evaluating happiness
=> shifted your attention! but perhaps that isn’t the biggest factor in evaluating happiness
