The Rational Reminder Podcast | Prof. Eric J. Johnson: Choice Architecture and Financial Decisions | Rational Reminder 240 @rationalreminder | Uploaded February 2023 | Updated October 2024, 13 hours ago.
The decisions we make may be further out of our control than we’d like to imagine. Today we are joined by Professor Eric J. Johnson to discuss choice architecture and its role in financial decision-making. Eric is a decision science expert and the author of the book, The Elements of Choice: Why the Way We Decide Matters. In this episode, we learn about the various factors that impact not only decision-making but the effort required to make a decision. Eric shares his philosophy on free will and shares advice for making important decisions and guiding clients to find the right choice as a financial advisor. Tune in to discover how to minimize the influence of the choice architect and take charge of your decisions!
Timestamps:
0:00 Intro
4:16 Describing the "Hidden Partner" that accompanies us in our decisions
6:46 Plausible paths, and how we choose them
10:06 Tactics to combat recall and memory issues in decision making
12:15 The impact of recent events on our decision making
19:02 Importance of default choices in determining what we ultimately choose
21:48 Other effects that drive the influence of defaults
26:02 The optimal number of options to present for a choice
28:18 How to determine if too many options are presented
34:23 The way options are described affects decisions
41:56 The role a choice engine plays in influencing choice
45:00 The role a choice engine can play in educating its users
51:23 Is absolute free will an illusion?
54:31 Suggestions to minimize the influence of choice architecture
59:08 Eric's recommendation for making broad decisions involving financial advisors
1:00:45 Eric defines success in his life
Participate in our 23 in 23 Reading Challenge:
23 in 23 Reading Challenge — rationalreminder.ca/23in23
23 in 23 Reading Challenge on Beanstalk — pwlcapital.beanstack.org
Participate in our Community Discussion about this Episode:
community.rationalreminder.ca/t/episode-240-prof-eric-j-johnson-choice-architecture-and-financial-decisions-discussion-thread/22037
Book From Today’s Episode:
The Elements of Choice — theelementsofchoice.com
Links From Today’s Episode:
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Shop Merch — shop.rationalreminder.ca
Join the Community — community.rationalreminder.ca
Follow us on Twitter — twitter.com/RationalRemind
Follow us on Instagram — @rationalreminder
Benjamin on Twitter — twitter.com/benjaminwfelix
Cameron on Twitter — twitter.com/CameronPassmore
Prof. Eric J. Johnson on Twitter — twitter.com/profericjohnson
The decisions we make may be further out of our control than we’d like to imagine. Today we are joined by Professor Eric J. Johnson to discuss choice architecture and its role in financial decision-making. Eric is a decision science expert and the author of the book, The Elements of Choice: Why the Way We Decide Matters. In this episode, we learn about the various factors that impact not only decision-making but the effort required to make a decision. Eric shares his philosophy on free will and shares advice for making important decisions and guiding clients to find the right choice as a financial advisor. Tune in to discover how to minimize the influence of the choice architect and take charge of your decisions!
Timestamps:
0:00 Intro
4:16 Describing the "Hidden Partner" that accompanies us in our decisions
6:46 Plausible paths, and how we choose them
10:06 Tactics to combat recall and memory issues in decision making
12:15 The impact of recent events on our decision making
19:02 Importance of default choices in determining what we ultimately choose
21:48 Other effects that drive the influence of defaults
26:02 The optimal number of options to present for a choice
28:18 How to determine if too many options are presented
34:23 The way options are described affects decisions
41:56 The role a choice engine plays in influencing choice
45:00 The role a choice engine can play in educating its users
51:23 Is absolute free will an illusion?
54:31 Suggestions to minimize the influence of choice architecture
59:08 Eric's recommendation for making broad decisions involving financial advisors
1:00:45 Eric defines success in his life
Participate in our 23 in 23 Reading Challenge:
23 in 23 Reading Challenge — rationalreminder.ca/23in23
23 in 23 Reading Challenge on Beanstalk — pwlcapital.beanstack.org
Participate in our Community Discussion about this Episode:
community.rationalreminder.ca/t/episode-240-prof-eric-j-johnson-choice-architecture-and-financial-decisions-discussion-thread/22037
Book From Today’s Episode:
The Elements of Choice — theelementsofchoice.com
Links From Today’s Episode:
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Shop Merch — shop.rationalreminder.ca
Join the Community — community.rationalreminder.ca
Follow us on Twitter — twitter.com/RationalRemind
Follow us on Instagram — @rationalreminder
Benjamin on Twitter — twitter.com/benjaminwfelix
Cameron on Twitter — twitter.com/CameronPassmore
Prof. Eric J. Johnson on Twitter — twitter.com/profericjohnson
