Default Thinking
Five years ago when I bought my house, I quickly got wifi for computer usage. The
order taker asked if I wanted to lease the modem for $5 per month or pay a one-time fee. I chose the $5 per month fee and stuck with it, for five years. I paid for the modem three times.
The authors of Nudge, Cass Sunstein and Richard Thaler, use the terms “automatic system” vs. “reflective system” when examining this phenomenon. When we employ automatic thinking, we do not really think at all; we just do. We buy Pepsi when thirsty. We take this route to work. We sign up for three issues of that magazine and then do not cancel it. We turn on the Channel 4 news when we return home.
With reflective thinking, we actually think through and examine our thinking before making a decision. Do we really want a Pepsi or should we be healthy and buy a bottle of water? Is there a more scenic, more relaxing route to work? I got my three free issues of that magazine; I will cancel after they arrive.
I should have reconsidered my telecommunications decisions at least once a month. But I dislike dealing with those issues: I would rather eat a frog. I would have saved a significant amount of money.
I wonder where else I am losing money because I have relegated a difficult decision to a non-decision? When do you resort to automatic thinking? Are those times best for you?
Five years ago when I bought my house, I quickly got wifi for computer usage. The
order taker asked if I wanted to lease the modem for $5 per month or pay a one-time fee. I chose the $5 per month fee and stuck with it, for five years. I paid for the modem three times.
The authors of Nudge, Cass Sunstein and Richard Thaler, use the terms “automatic system” vs. “reflective system” when examining this phenomenon. When we employ automatic thinking, we do not really think at all; we just do. We buy Pepsi when thirsty. We take this route to work. We sign up for three issues of that magazine and then do not cancel it. We turn on the Channel 4 news when we return home.
With reflective thinking, we actually think through and examine our thinking before making a decision. Do we really want a Pepsi or should we be healthy and buy a bottle of water? Is there a more scenic, more relaxing route to work? I got my three free issues of that magazine; I will cancel after they arrive.
I should have reconsidered my telecommunications decisions at least once a month. But I dislike dealing with those issues: I would rather eat a frog. I would have saved a significant amount of money.
I wonder where else I am losing money because I have relegated a difficult decision to a non-decision? When do you resort to automatic thinking? Are those times best for you?
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