Feeling stressed trying to pick a flavor of ice cream? Or maybe you’re endlessly scrolling through Netflix, unable to decide what to watch? You might be experiencing the Paradox of Choice, a powerful mental model that explains why more isn’t always better.

1. What is Paradox of Choice?

The Paradox of Choice suggests that having too many options can actually lead to decision paralysis, decreased satisfaction, and increased anxiety. Instead of feeling empowered by abundant choices, we can become overwhelmed and less happy with our ultimate decision.

This concept originates from the work of psychologist Barry Schwartz, who explored the idea in his book, “The Paradox of Choice: Why More Is Less.” He built upon research in psychology and economics to demonstrate that while a certain level of choice is beneficial, an excess can lead to negative outcomes.

2. How It Works

Imagine a spectrum. On one end, you have a single option – maybe only one type of jam available. That’s limiting. But on the other end, you have a supermarket aisle overflowing with dozens of jam varieties. This is where the Paradox of Choice kicks in.

Here’s a simplified breakdown:

• Increased Opportunity Cost: With so many options, we start to dwell on the alternatives we didn’t choose. We fixate on the “what ifs” and the potential benefits we might be missing out on, increasing the perceived cost of our chosen option.
• Higher Expectations: Abundance raises expectations. We believe that with so many choices, we should be able to find the perfect option. When reality falls short (as it inevitably does), we experience dissatisfaction.
• Decision Fatigue: Making choices, even small ones, drains our mental energy. Too many options lead to decision fatigue, making us more likely to make impulsive or poor choices later on.

Think of it like this: trying to find a specific grain of sand on a beach. The more sand there is, the harder and more frustrating the search becomes.

3. Examples of the Model in Action

• Online Shopping: You need a new pair of jeans. Online, you’re faced with thousands of styles, brands, and fits. Hours later, you’re still browsing, overwhelmed and unsure if you’ve even found the best option. Ultimately, you might buy nothing or end up regretting your purchase.
• Investing: Instead of sticking to a simple, diversified portfolio, an investor spends hours researching hundreds of individual stocks, believing they need to find the absolute best performing ones. They end up confused, stressed, and potentially making worse investment decisions than if they had stuck with a simpler strategy.
• Choosing a Restaurant: Scrolling through endless options on a food delivery app. You finally settle on a place, but spend the entire meal wondering if you made the right choice and what the other restaurants might have offered. The enjoyment of the food is lessened by the cognitive overload.

4. Common Misunderstandings or Pitfalls

• Believing “More is Always Better”: The biggest pitfall is failing to recognize that a sweet spot exists. More choice is beneficial up to a point, after which it becomes detrimental.
• Assuming it Applies to Everyone Equally: Personality plays a role. “Maximizers” (those who strive to make the absolute best choice) are more likely to be negatively affected by the Paradox of Choice than “Satisficers” (those who seek a “good enough” option).
• Ignoring the Context: The complexity of the decision matters. Choosing a snack is different than choosing a career. The model’s impact is more pronounced for significant, high-stakes decisions.

5. How to Apply It in Daily Life

Here are a few actionable tips to combat the Paradox of Choice:

• Set Criteria: Before facing a multitude of options, define what’s truly important to you. List your needs, wants, and deal-breakers. This narrows the field and simplifies the decision.
• Impose Limits: Actively limit the number of options you consider. For example, before browsing online, decide to only look at items on the first two pages of results.
• Embrace “Good Enough”: Train yourself to be a “Satisficer.” Instead of striving for perfection, aim for a choice that meets your criteria and move on.
• Practice Gratitude: Once you’ve made a decision, focus on the positive aspects of your choice and avoid dwelling on what you might have missed.
• Default to Simplicity: When possible, opt for simpler solutions or pre-selected options. For example, use a meal kit service or choose a recommended insurance plan.

6. Related Mental Models

• Occam’s Razor: This model favors simplicity and suggests that the simplest explanation is usually the best. It aligns with the Paradox of Choice by advocating for minimizing complexity.
• Loss Aversion: Our tendency to feel the pain of a loss more strongly than the pleasure of an equivalent gain. This can amplify the negative effects of the Paradox of Choice, as we worry more about making the “wrong” choice and experiencing a loss.
• Decision Fatigue: As mentioned earlier, this is closely related. Recognizing that decision-making depletes mental resources can help you proactively limit choices, especially when you know you have important decisions to make later in the day.

By understanding and applying the Paradox of Choice, you can reclaim your decision-making power, reduce stress, and ultimately increase your satisfaction with the choices you make every day. So, the next time you’re overwhelmed by options, remember that less can truly be more.