Choiceology with Katy Milkman cover image

Choiceology with Katy Milkman

A Sticky Situation: With Guests Richard Thaler, Wendy Wood & Susan Budowski

Oct 23, 2023
Richard Thaler, Nobel Prize-winning economist, discusses the concept of friction and 'sludge' in decision-making. Susan Budowski shares stories of people struggling to get out of timeshare contracts. Wendy Wood talks about leveraging friction for positive habits. The podcast explores subscription traps and the impact of friction on behavior change.
37:36

Podcast summary created with Snipd AI

Quick takeaways

  • Friction can significantly impact our choices, whether intentional or unintentional, and understanding its influence can help us make informed decisions and seek ways to minimize barriers.
  • Friction can shape our habits and behaviors, and by introducing small barriers or obstacles, we can make undesirable behaviors more difficult and desirable behaviors easier to perform.

Deep dives

Friction and its Influence on Decision-Making

Friction, or the barriers that hinder progress or decision-making, can significantly impact our choices. These barriers can be unintentional, like poor design or complex bureaucracy, or intentional, designed to keep customers from canceling or switching services. For example, a newspaper subscription with a one-pound trial may require customers to call a specific phone number during business hours to cancel, making it difficult to unsubscribe. Similarly, timeshare agreements often have complicated contracts that make it challenging for owners to get out. Friction can also affect voting behavior, as people may overlook the difficulty of navigating certain processes, like obtaining childcare or transportation. By understanding the influence of friction, we can make informed decisions and seek ways to minimize unnecessary barriers.

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