START A PETITION 27,000,000 members: the world's largest community for good
START A PETITION
x

Do You Make Rational Decisions?

Do You Make Rational Decisions?

Think you make smart, rational choices — at least most of the time — about your health, your money, your love life? Think again. Social science research, and ample anecdotal evidence, proves that assumption wrong.

We’ll complain about the price of a grocery item (“The sign said it was on sale for $3.29, but it rang up at $3.59!”) only to walk to the coffee shop and plop down $4.50 for a latte. We’ll stick with a problematic relationship even though we’ve pinpointed flaws from the start. Or we’ll pursue longevity by running religiously but avoid doctor’s visits and medical tests that would detect common killers.

Why do we make decisions that go against our self-interest? Several recent books offer insight into our counterintuitive choices. The authors, all human-behavior experts, say it’s in our nature to make irrational choices in certain situations. But take cheer: We can help override our occasional illogic with small environmental changes that steer us toward smarter decisions. When we understand how we make decisions — and how our environment influences those decisions — we can “smarten up” our choices.

Why Good People Make Bad Decisions
For starters, there’s no such thing as a “pure” decision based on cold logic and empirical information. Instead, every choice we make is filtered through the context of our senses and acquired biases. And those decisions are reinforced every time one of them results in instant gratification.

“Those [instantly gratifying] decisions become habit, and habits are hard to break,” says MIT behavioral economist Dan Ariely, author of Predictably Irrational: The Hidden Forces That Shape Our Decisions (HarperCollins, 2009).

It also can be scary to break with the familiar, says psychologist Rom Brafman, PhD, coauthor with brother Ori Brafman of Sway: The Irresistible Pull of Irrational Behavior (Broadway Business, 2009). So we’ll stick with unsuitable partners and jobs in repeated episodes of “loss aversion” — times when we make every effort to avoid losing an “investment” of years spent, even if they were bad years.

And what fuels our perception that the occasional cigarette or delayed medical test won’t ever affect us? Harvard legal scholar Cass Sunstein and University of Chicago economist Richard Thaler, coauthors of Nudge: Improving Decisions About Health, Wealth, and Happiness (Penguin, 2009), suggest that it is “unrealistic optimism,” or our tendency to see ourselves as immune from common problems. (“Other people might suffer a heart attack or have a drinking problem or get divorced — but not me!”) We perceive ourselves as having a “free pass,” and in that frame of mind, it’s easy to justify irrational decisions.

Choice Architecture
You can help yourself make smarter choices by becoming a “choice architect,” say Thaler and Sunstein. Choice architecture is the practice of reorganizing the context in which you make decisions — in other words, making a change in your physical surroundings or daily processes to promote better decision-making. A simple example: If the fridge is stocked with fresh fruits and veggies, and the frozen toaster tarts are conspicuously missing, you’re set up to make the healthier choice.

It’s critical that we institute our own choice architecture, because our world is teeming with sneaky choice architects who work to influence our decisions to benefit them — often to our detriment. Credit-card companies cleverly place the enticing “minimum amount due” box right next to that huge depressing total — and we take the bait despite knowing we’ll pay much more in interest (while they rake in even bigger profits). Advertisers employ clever psychological devices to trigger the brain’s reward center and encourage us to buy items we don’t need (and sometimes don’t even want). Mortgages, cell phone offers and health insurance plans are deliberately written to make us feel ignorant, overwhelmed and vulnerable to sign up for an expensive or risky contract.

But with a little planning and rearranging, we can help ourselves make smarter choices about the things that matter most.

Small Changes, Better Choices
When staff at a large school cafeteria altered the layout of food — carrots at eye level, French fries further out of reach and desserts in a remote line — children chose healthier foods, report Sunstein and Thaler. The manipulation was designed by a supermarket consultant skilled in grocery layout tricks that get us to choose processed, expensive junk (the junk-makers pay for prime placement) over fresh, whole foods. Obviously you can’t rearrange your grocery store, but always bringing a list when you shop will help you ignore the purchase persuaders.

At home, cut fruit and veggies into snack-friendly sizes and keep them front and center in the fridge; sequester unhealthy treats in the back of a high cupboard or buried in the freezer (or don’t bring them home at all). Keep exercise gear front and center, too. Park your workout shoes right by the bed if you want to go to the gym first thing in the morning. Leave your bike near the garage door so you can access it easily when you want to ride.

At restaurants, be aware that peer pressure can lure you into ordering and eating more than you otherwise might. “We know from studies that people really want to be similar — if others order appetizers, or drinks, or dessert, we’ll get them, too. And we tend to get similar entrées,” says Ariely. We’ll also cave to what the waiter is pushing, he notes. Smart tactic: Make your decision before the waiter comes and order before others. You can even look at the restaurant menu online and make your decision before you go. Restaurant portions also tend to be on the large side, so ask for a to-go box right away and stash a portion before you start.

Sunstein and Thaler cite multiple studies showing that people spend more when paying by credit instead of cash. Try withdrawing the amount of money you need for weekly expenses and leaving your credit cards at home. If you still feel plastic’s siren song, try making them even less accessable: put your card in a lockbox in the basement and stash the key in a drawer on the upper floor. Then, when you get the urge to spend, you will have several flights of stairs and extra effort to think through whether the item in question is really worth it.

These are just a few examples of how to help yourself make smarter, healthier choices — and to nudge yourself toward a happier, more fulfilling life. With these types of small changes, says Ariely, you’ll soon be on the road to “behaving like the person you want to be.”

Helen Cordes is a freelance writer in Texas.
Make the Smart Choice
Have a goal you want to reach but struggle making the choices that will get you there? Here is some smart architecture for specific goals:

  • If you want to eat more whole foods, buy a subscription to a CSA (community supported agriculture). CSA farmers deliver fresh, seasonal produce to your door each week. The amounts are often quite generous, as well. You’ll be hard-pressed to not eat your veggies when they’re delivered directly to you in their seasonal prime.
  • If you want to be more active, always park your car a healthy distance from your destination (the far end of the parking lot or the opposite end of the block). Also make a commitment to take the stairs when you have a choice. You’ll work more steps into your day without having to work in the time needed for a traditional workout.
  • If you want to save money, pick one small spending habit and pay yourself not to do it anymore. For every morning you make coffee at home and forgo the pricey coffeehouse, put a dollar in a jar. You’ll have a nice kitty at the end of the month to add to savings.
  • If you want to choose any better option (stop smoking, clean your garage, you name it), sign up with www.stickk.com. You sign a binding contract to carry out your goal, commit some cash, and then if you don’t do what you say, your dough goes to charity — or, even better, an anti-contribution (think donation to cigarette-maker Philip Morris). Or negotiate a Stickk with a friend who’ll resist your excuses and make you pay up.

Experience Life magazine is an award-winning health and fitness publication that aims to empower people to live their best, most authentic lives, and challenges the conventions of hype, gimmicks and superficiality in favor of a discerning, whole-person perspective. Visit www.experiencelifemag.com to learn more and to sign up for the Experience Life newsletter.

Read more: Do Good, Health, Self-Help, ,

By Helen Cordes, Experience Life

have you shared this story yet?

go ahead, give it a little love

Megan, selected from Experience Life

Experience Life magazine is an award-winning health and fitness publication that aims to empower people to live their best, most authentic lives, and challenges the conventions of hype, gimmicks and superficiality in favor of a discerning, whole-person perspective. Visit experiencelife.com to learn more and to sign up for the Experience Life newsletter, or to subscribe to the print or digital version.

11 comments

+ add your own
11:28PM PDT on Aug 14, 2013

If you take out cash for a purchase remember to put the change back into your account or into your change jar to keep it out of reach. $$$$!!!!

11:07PM PDT on Aug 14, 2013

Thank you for info.

11:03PM PDT on Aug 14, 2013

Thank you for info.

10:44PM PST on Jan 16, 2012

Thank you for the tips.

8:53AM PDT on Oct 2, 2010

There's a wonderfully cute children's story that illustrates this theme beautifully:
the "Cookies" chapter pp # 30
Frog and Toad Together by Arnold Lobel
Harper & Row, 1971

Had to go pull it off my bookcase for a quick re-read. You find a lot of good human psychology in children's literature, seriously!!! LOL

8:43AM PDT on Oct 2, 2010

I was curious during the reading of this article as to why the first & foremost emphasis & situational examples were related to food. While the old adage "you are what you eat" is probably generally true, I think there was too much focus on food in this article;& it seems to detract from the author's main point.The author's basic premise here( or @ least what I believe to be the main theme) is: That people can be better choice architects for themselves- if they make a conscious decision to do so;& if they take the time, effort & commitment it requires to discover why you sabotage yourself & plan strategies so that you don't unwittingly fall into your own traps in the future.I believe these principles to be true;but the remainder of the article does not support the main purpose very well;& implementation strategies are absent & weak.

One of these strategies discussed here was what I would label: Remove the temptation. I know through past experience that this particular strategy will not work for me. In fact, it just makes me concentrate on the immediate gratification (as opposed to long-term best interests);& results in my undoing all the barriers I have placed between myself & whatever target object I'm trying to limit in my life. The credit card locked in a box in the basement with the key upstairs won't do it for me & just intensifies siren call by multiple increments. COME & GET ME thus becomes the challenge of the moment.

2:03AM PST on Feb 5, 2010

Interesting article but the research doesn't back the headline at all. Humans have complex interactions between choices and this makes their decision making seem, at times, irrational against the backdrop of an individual objective. Ants are only driven to survive and thats a simple problem to solve. Interestingly, it did take an irrational human to write the headline and to be fair an ant colony never would have, but that is not because they are "better at rational decision making"

cheap r4 ds

6:38AM PDT on Sep 15, 2009

Great article! I'm in the process of reading Predictably Irrational, Nudge, and Sway, as well as Hugh Grant's book, Introduction to Behavioral Economics. It's important to note that the science of Behavioral Finance is simply adding the human element to traditional finance. Behavioral Finance, or behavioral science, is not about making logical decisions. It's about understanding that logic is only one factor in how we make decisions.

Unfortunately, I have the task of finding a way to explain heuristic decisions, frame-based decisions, etc., in a way that anyone can understand. A publisher is interested in my book but wants me to support my observations about the impact that fear has on investment decisions with academic data. When I wrote Investiphobia - You Can Invest Without Fear, I committed to keeping the book simple and understandable. That commitment remains and I will not produce a complicated academic tome. However, it is challenging.

I particularly loved the suggestions you make on non-financial decisions, local produce, healthy food choices, quitting bad habits, parking at the end of the lot, etc.

Paul

6:15PM PDT on Sep 13, 2009

Interesting article. But logical decissions do not always equal good decissions. We are complex beings with many faculties other than logical mind. To be a whole (and in the end, a happy) person we can't rely on logic alone. This especially concerns our relationships - we often make our choices based on subconscious motivations; true that often these choices bring suffering, but perhaps there are reason's we are attracted to certain people: we want to grow, but there's no growth without challenges. Relationships are too often viewed as goods exchange contracts. Also, for the sake of feeling secure, we all like to be in control of our money, having ability to save them (this is a logical choice), but being totally focused on this objective leaves no room for spontaneity, individuality, creature comforts, and simply - enjoying life.

3:50PM PDT on Sep 13, 2009

A great article that most people need to read.
But I disagree with the asking for a take out box at a restaurant... either share your meal with a friend if you know it will be a large portion or bring your own reusable container!

add your comment



Disclaimer: The views expressed above are solely those of the author and may not reflect those of
Care2, Inc., its employees or advertisers.

people are talking

Love birds , thanks for the great ideas

Very good to know. I do like gingerbread.

my best friend's step-aunt makes $88 /hour on the internet . She has been laid off for seven months …

Good advice. Thank you.

CONTACT THE EDITORS



Select names from your address book   |   Help
   

We hate spam. We do not sell or share the email addresses you provide.