Why Choice is Overrated

People often assume that more choice is always good, not matter how much we already have. However, a good rule of thumb is that everything carries diminishing returns. Consider these reasons, some discovered by psychologists, for why choice is overrated:

1. Too much choice makes us unhappy. Here, the social psychologist Barry Schwartz gives a 9 minute talk about his research findings on choice and happiness. Too many choices basically overwhelm us. Instead of settling on "good enough," we naturally pursue the best. We also tend to worry after making a choice since we wonder if the many other choices were better. We simply lack the brainpower to understand all our choices sufficiently to know what choice is best.
   
2. Too much choice makes us selfish. Having choice causes us to focus on our wants and needs rather than those of others.
3. Too much choice can hurt brand performance: "While regional and store brands are likely to benefit from longer product lines, the model suggests that big firms such as Procter & Gamble probably would be better off if they offered less variety."
   
4. Additional choices might not be better than the choices already available.
5. Additional choices might carry negative externalities. For example, new cars might come on the market with the most desirable car, from an individual perspective, having the most negative environmental impact.

It is far, far from self-evident that more choice is always better. In fact, we have far too much choice. This does not mean that more choice is always bad, but there is likely a balance between too much and too little choice.