Delaying decisions often stems from the belief that tomorrow will bring new opportunities or motivations to change one's situation. This mindset leads to a bias where individuals continuously postpone choices, rationalizing that waiting incurs minimal cost. The introduction of an option to defer decisions can create a false sense of security, allowing individuals to avoid immediate challenges by hoping for better circumstances in the future. This mentality not only affects personal career choices, like contemplating job changes, but extends to evaluating ongoing commitments, such as ineffective employees. A practical heuristic emerges from recognizing that 'tomorrow is often a repeat of yesterday,' prompting individuals to critically assess whether repeated chances truly yield different outcomes. Embracing this perspective helps clarify decision-making by cutting through unnecessary complexities and encourages individuals to prioritize actionable tasks today rather than deferring them for an uncertain future payoff.
Revisiting Steve’s 2021 conversation with the economist and MacArthur “genius” about how to make memories stickier, why change is undervalued, and how to find something new to say on the subject of scarcity.
- SOURCE:
- Sendhil Mullainathan, university professor of computation and behavioral science at the University of Chicago Booth School of Business.
- RESOURCES:
- "Fictional Money, Real Costs: Impacts of Financial Salience on Disadvantaged Students," by Claire Duquennois (American Economic Review, 2022).
- "Do Financial Concerns Make Workers Less Productive?" by Supreet Kaur, Sendhil Mullainathan, Suanna Oh, and Frank Schilbach (NBER Working Paper, 2022).
- Subtract: The Untapped Science of Less, by Leidy Klotz (2021).
- "Heads or Tails: The Impact of a Coin Toss on Major Life Decisions and Subsequent Happiness," by Steve Levitt (NBER Working Paper, 2016).
- Scarcity: Why Having Too Little Means So Much, by Sendhil Mullainathan and Eldar Shafir (2013).
- "The End of History Illusion," by Jordi Quoidbach, Daniel T. Gilbert, and Timothy D. Wilson (Science, 2013).