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90% of your daily decisions happen automatically, many shaped by your environment. Thus, most decisions are a habit, not a deliberate choice.
To make smarter choices, design smarter defaults. And habits can be developed by shaping the invisible defaults of your life.
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Design your life like a choice architect:
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“First, never underestimate the power of inertia. Second, that power can be harnessed.”
Richard Thaler
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Key Ideas
While prompted to make a decision with a given set of options, a person has the freedom to refuse to actively make a choice.
The decision-making process of the person is affected by the
If a person is told about the economic incentives of their selection, they are more likely to make an active choice.
If the person is told about the pros and cons of their decision, they have a logical reason to make the desired choice, as it can minimize any potential loss.
Organizations need to understand when to provide a reward to the person making the choice to promote active choice-making, or to initiate a penalty to make them provide a concrete answer.
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Key Ideas
Deciding is too much effort so we’re likely to just stick with the default or safer option if it’s already been chosen for us.
When we get offered too many choices, the same...
This is when serotonin is at it’s natural high, which helps to calm our brain. Thus, we feel less risk averse and so we can face risks and make harder choices.
If we’re feeling hunger, thirst or sexual desire, that can actually spill over into the decision areas of our brains, making us feel more desire for big rewards when we make choices.
This can lead us to make higher-risk choices and to want for more.
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Key Ideas
Although we usually have the freedom to make a wide range of choices at any given moment, we often make decisions based on the environment we find ourselves in: