
ON VARIETY AS A MEMORY ENHANCEMENT
ON THE BENEFITS OF A CROWDED SPACE (so called “misattribution of emotions” included)
ON HIRING A GOOD (AND FREE) ADVISOR
Q:
In terms of his moving versus not moving, I suspect your son is suffering from a combination of three decision biases. The first is the endowment effect, which has to do with our tendency to use our current situation as a reference point, and view any other alternative as a negative change from where we are now. In your son’s case, moving from New York City to the West Coast has some advantages (weather, his parents, etc.) and some disadvantages (lower density, fewer art galleries, etc.), and the endowment effect suggests that he is focusing to a larger degree on the things he would give up, and not paying sufficient attention to the things that he would gain if he ever moved to the West Coast.
The second decision bias your son is most likely suffering from is the status quo bias, which means that we feel very differently about a decision to stay in a situation, compared with a decision to change our situation. I once heard an air force commander tell his pilots that every second, they are making a decision to change course or to stay their course, and that they should always think about their actions as active choices. The problem is that very few of us think about our decisions this way. We think that moving, getting married, changing jobs, etc., as decisions, but we don’t think about staying in the same place, staying single, keeping the same job etc., as decisions. Or at least we don’t think of them as decisions to the same degree.
The third decision bias is the unchangeability bias. The idea here is that when we face large decisions that seem to be immutable (getting married, having kids, moving to a distant place), the permanence of these decisions makes them seem even larger and more frightening. Not to mention that such decisions increase our potential for regret.
(c)