Analysis ParalysisOpen Access

Analysis Paralysis

Our capacity to process information and make decisions reduces with each made

Each trade-off we make between options quickly depletes our ability to solve problems correctly. We’ll eventually revert to defaults or give up.

Vohs, Baumeister, Schmeichel, Twenge, Nelson & Tice (2018). Making choices impairs subsequent self-control. Self-Regulation and Self-Control.

The study

Setup

42 people were either asked to make 35  'A or B' choices that would inform the design of an educational course they were attending, or instead to just read the course material. Both were then tasked with solving math puzzles and were timed until they gave up.

Results

Those who had to make the choices beforehand persisted for less time on the puzzles and also got fewer right.

Study graph

Key Takeaways

Protect your decision capacity.

Prioritize your day around and take breaks before making harder decisions. For example, restaurant inspectors can reduce errors by scrutinizing sites at higher risk of failure at the start of the day (Ibanez & Toffel, 2017).

Takeaway image

Create product contrast.

When no option in a set offers a distinct advantage from the others, we're most at risk of not choosing at all (Dhar, 1997). How can you improve your choice architecture to offer variety that actually makes deciding easier? 

Takeaway image

Order matters for revenue.

Prospective Audi owners given a high number of customization options early on more readily accepted, higher-priced defaults in later steps (Levav, 2010). Though be careful not to trigger Reactance by pre-selecting defaults that are seen as too expensive.

Takeaway image
Takeaway image
Analysis Paralysis

Analysis Paralysis

Our capacity to process information and make decisions reduces with each made

Each trade-off we make between options quickly depletes our ability to solve problems correctly. We’ll eventually revert to defaults or give up.

The study

Setup

42 people were either asked to make 35  'A or B' choices that would inform the design of an educational course they were attending, or instead to just read the course material. Both were then tasked with solving math puzzles and were timed until they gave up.

Results

Those who had to make the choices beforehand persisted for less time on the puzzles and also got fewer right.

study graph
np_read_2490885_000000

In detail

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Scarcity

Scarcity

We value things more when they’re in limited supply

Social Proof

Social Proof

We copy the behaviors of others, especially in unfamiliar situations

Prospect Theory

Prospect Theory

A loss hurts more than an equal gain feels good

Reciprocity

Reciprocity

We’re hardwired to return kindness received

Framing

Framing

We make very different decisions based on how a fact is presented

Loss Aversion

Loss Aversion

We feel more negative when losing something than positive when we gain it

Default Effect

Default Effect

We tend to accept the option pre-chosen for us

Anchoring

Anchoring

What we see first affects our judgement of everything thereafter

Fast & Slow Thinking

Fast & Slow Thinking

We make knee-jerk spontaneous decisions that can cause regretful damage

Salience

Salience

Our choices are determined by the information we're shown

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Risk Aversion
We don’t like uncertainty and generally stick to what we know

Welcome to a concept that's global and evolutionarily-based.

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Risk Aversion
We don’t like uncertainty and generally stick to what we know
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