.svg){kind=icon}
In 2020, we all had to make some difficult decisions. Questions like ‘how can my team weather the crisis?’, ‘how can I create the best content for the current climate?’, and even ‘is it safe to see my friends?’ have been at the front of everyone’s minds.
The problem with difficult questions is that they usually involve difficult choices – whether that’s choosing how to cut costs, or choosing which way to steer your marketing strategy during a pandemic. But enough about 2020, it’s time to look forwards.
The psychology behind decision-making is fascinating and offers all of us a chance to gain some perspective on our tough choices. Let’s take a look at some of the psychological principles that influence our decisions, and how we can make better and easier choices in future.
Psychology of choice
The psychology of choice looks at how we make decisions and what influences those choices. It dives into the mental processes we use to weigh our options, the biases that can cloud our judgment, and the emotional and cognitive factors at play.
This field pulls together ideas from psychology, economics, neuroscience, and behavioral science to figure out why we pick what we do and how we can get better at making decisions.
What happens when we have to choose?
Picture this: you’re taking a walk in the woods when the path you’ve been following splits into two. The path to the right takes you into a dark, spooky-looking cluster of trees. The path to the left veers off into a muddy swamp. Which do you choose?
Rational Choice Theory, based on the ideas of economist Adam Smith in 1776, is one of the leading theories behind decision making. The theory says that we make rational decisions by choosing the option which aligns best with our own personal motives and objectives. In this case, if you’re thinking of heading straight to a restaurant after your walk and don’t want to turn up covered in mud, you’re likely to choose the path through the trees.
However, many economists and psychologists dispute Rational Choice Theory based on one thing in particular: the impact of emotions. It turns out that our emotions have a significant impact on the decisions we make and can override a rational decision. That’s why, in the example above, you might continue through the muddy swamp even if you rationalize that going through the spooky cluster of trees is the better choice. Because, well, the trees look scary.
What goes on in our brains?
Studies suggest that the decision-making process takes place in the front part of our brains, in what’s called the prefrontal cortex. In evolutionary terms, this is the newest part of our brain and is responsible for important processes like making long-term plans and calculating risk.
When examining this part of the brain during decision-making processes, neuroscientists at the University of Pittsburgh found that stressors like anxiety seriously affect cognition. Anxiety disrupts brain neurons which makes it harder to make rational decisions. The researchers found that this was the case both in animals and humans.
How do biases affect our choices?
Biases can seriously mess with our decision-making, often without us even noticing. These mental shortcuts help us make quick decisions but can also lead us off track.
One major way biases affect us is by shaping how we see and use information. We tend to favor information that’s easy to recall or that fits with what we already believe. This can lead us to make choices based on recent experiences or familiar ideas, even if they’re not the best.
Emotions play a big role too. When we’re stressed or anxious, our thinking gets cloudy, and we might fall back on biases. For example, fear can make risks seem worse than they are, pushing us to avoid options that could actually be good for us.
The way information is framed can also sway us. The same choice might look better or worse depending on how it’s presented. This can lead us to make decisions based on how something is described rather than on its actual merits.
What biases are there?
A few of the psychological biases we might experience include:
Loss aversion
This means that ‘losses loom larger than gains’, and we tend to be more fearful than hopeful. Loss aversion causes us to choose an option that is less risky over one which is a more rational choice.
Status quo bias
We prefer sticking with what’s comfortable and familiar instead of making changes. Status quo bias causes us to stay with the phone provider we’ve been with for the past five years instead of switching to another which is offering a better deal.
Social proof
This is one we’re all familiar with. If we see all of our friends or a large group of people making one choice, we’re inclined to follow suit. Blame our bias towards fitting in and being part of the group.
Framing
The way choices are presented to us can easily throw us off. If someone offers us the choice of a 20% fat ice cream or an 80% fat-free ice cream, we’re inclined to choose the latter if we’re looking for a healthier alternative.
Priming and how it affects our choices
Priming is like sneaky brain prep work. It’s when exposure to one thing subtly influences how we react to something else, often without us realizing it.
For example, if you see ads with happy, active people, you might be more likely to choose a product that seems to promise similar vibes, even if it’s not directly related. Or if you’re shown words about kindness, you might find yourself acting more generously later on, without connecting the dots.
Even small details can prime us. Being in a bright, tidy room might make you more upbeat and decisive than being in a dark, cluttered space. It’s like the environment sets a mental mood that affects your choices.
Priming can also shape how we interact with others. If you’ve been thinking about trust and cooperation, you’re more likely to work well with people and make decisions that reflect those thoughts.
So, priming is a subtle but powerful way our surroundings and experiences influence our decisions. Being aware of it can help us make choices that really match our true intentions.
How do we make better choices?
The odds may seem stacked against us – our emotions can mislead us, and unconscious biases can cloud our judgment. Plus, stress from one bad decision can spiral into more poor choices. But don’t lose hope! Improving our decision-making can be as simple as rethinking our approach. Here’s how:
1. Recognize and challenge biases
Start by identifying your biases. Are you making decisions based on fear, convenience, or what others think? Once you spot these biases, question whether they’re influencing your choices. This can help you move towards more rational decisions.
2. Embrace integrative thinking
Integrative thinking, a concept introduced by Graham Douglas and popularized by Roger Martin, involves holding two opposing ideas at once and finding a creative solution that blends elements of both. Instead of settling for one option or another, look for ways to combine the best parts of each. This can lead to more innovative and effective decisions.
3. Use decision-making frameworks
Frameworks like cost-benefit analysis or decision matrices can help you weigh the pros and cons of different options systematically. By breaking down the decision into manageable parts, you can make a more informed choice.
4. Take time to reflect
Avoid making decisions in the heat of the moment. Give yourself time to reflect and consider the long-term implications of your choices. This pause can help you overcome initial biases and emotional reactions.
5. Seek diverse perspectives
Get input from others who have different viewpoints. They can offer insights you might not have considered and help you see the situation from a new angle. This diversity of thought can lead to better, more balanced decisions.
6. Consider future impact
Think about how your decision will affect you in the long run, not just in the immediate moment. This forward-looking approach helps ensure that your choices align with your long-term goals and values.
7. Practice mindfulness
Being aware of your emotions and stress levels can improve your decision-making. Mindfulness techniques can help you stay grounded and make choices based on a clear, calm mindset rather than impulsive reactions.
All in all
Let’s go back to our scenario in the woods. Using integrative thinking in this context might mean that you choose neither path. Instead, you might forge your own route between the swamp and the spooky cluster of trees. This route might be muddy, but it won’t be as muddy as the swamp. It might be dark, but it won’t be as dark as the cluster of trees.
While making decisions is difficult, looking at different ways of creating solutions and mitigating biases is the way forward. Here’s to better decisions from here onwards.
Read more about the psychology of choice in our guide to persuasive patterns.
