The

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The Official Syllogism

• More freedom means more welfare
• More choice means more freedom
• More choice means more welfare

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285 Brands of Cookies
75 Iced Teas

• 230 Soups

6.5 Million Stereo Systems!!
175 Salad Dressings
275 Cereals
40 Toothpastes
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What Too Much Choice Does Paralysis

• Buying jam
• Shopping in food markets
• 401(k) investing

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What Too Much Choice Does Satisfaction

• With all this choice, people may do better
• But they feel worse

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Why Choice Makes People Miserable

• 1. Regret and anticipated regret

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Why Choice Makes People Miserable

• 1. Regret and anticipated regret
• 2. Opportunity costs

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• Offer participants 2 or a good pen 75
  choose pen

Offer participants 2, or 1 good pen, or 2
cheaper pens 45 choose either pen
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Why Choice Makes People Miserable

• 1. Regret and anticipated regret
• 2. Opportunity costs
• 3. Escalation of expectations

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Why Choice and Maximizing Make People Miserable

• 1. Regret and anticipated regret
• 2. Opportunity costs
• 3. Escalation of expectations
• 4. Self-blame

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Maximizing and Satisficing
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Libertarian Paternalism(Sunstein Thaler, U.
of Chicago Law Review, 2003)

• Organ donation
• 401(k) participation