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Choiceology with Katy Milkman

A Choice Apart: With Guests Max Bazerman & Vivienne Wagner

Choiceology with Katy Milkman

Charles Schwab

Investing, Social Sciences, Behavioral Economics, Science, Society & Culture, Decision Making, Charles Schwab, Dan Heath, Business, Katy Milkman

4.71.5K Ratings

🗓️ 27 April 2020

⏱️ 28 minutes

🧾️ Download transcript

Summary

Have you ever purchased a car or a motorcycle or a boat, based on some particular quality it had that made you fall in love? Maybe it was candy apple red. Maybe it had sleek lines. Maybe the engine made a pleasing purr. Hopefully that decision was a happy one. But what happens when the red sports car spends most of its time in the shop? Or the sleek motorbike is hard on your back? Or the purring boat engine is a gas-guzzler? In this episode of Choiceology with Katy Milkman, we look at how our preferences tend to shift when we evaluate a choice on its own versus side-by-side with other possible options. The episode begins with Vivienne Wagner and her family’s decision to adopt an adorable puppy after seeing a popular movie that featured the breed. (You know, the spotty dogs—over a hundred of them.) It’s a cautionary tale about a lovable but incredibly difficult pooch named Barkley and the perils of selecting a family pet in a vacuum. Max Bazerman is an authority on the phenomenon of shifting preferences when decisions are made separately or jointly. He joins Katy to discuss the ways in which our evaluation tendencies can impact activities ranging from hiring an employee to communicating with a spouse. He also discusses strategies to be more deliberative while making important decisions.

Transcript

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0:00.0

All right, so let's get to it.

0:09.0

So seeing as we're heading into next fiscal I figured it was a good idea to you know make a

0:15.4

decision on promotion soon and we've got one team leader spot opening up I don't know if you

0:20.0

have any thoughts about that.

0:22.0

Oh well you know I really like Alex. He's got lots of good ideas. He's

0:27.0

always on time. He's got a good idea with clients. He's a super nice guy. He's a very nice guy for

0:31.9

sure. He's been great to work with on our team as well. But you know if you put him side to side with Selina, have a look at these numbers. She's closed almost 20 more deals than Alex in the same time period, which was that was a huge boost to our numbers last quarter. You know, like don't get me wrong. Alex is great as well. They're both great, but you know, Selina's really stepped up lately.

0:53.7

Yeah, you know, you're right, actually. I hadn't thought about it, and now that I see them like

0:59.0

side to side like this, yeah, I see what you see.

1:02.8

Selina also, you know, she's been great to work with too actually.

1:07.0

Yeah, for sure.

1:08.0

So would you be all right if we move Selina up to team later?

1:11.0

Yeah, yeah, that works for me. Great. Okay, excellent, thank you.

1:17.0

Conversations like this happen a lot when it's time to make decisions about

1:21.0

promotions, hiring, and even raises.

1:24.6

These are all important decisions.

1:27.0

But sometimes managers will focus on one candidate

1:30.4

at a time when it might be better to line candidates up next to one another to get the bigger picture.

1:37.0

Today we'll talk about a quirk of human decision-making that has implications in the boardroom, the grocery store, even when it comes to selecting

1:48.4

your family's pets. I'm Dr. I'm Dr. I'm Dr. Katie Milkman and this is Choiceology, an original podcast from Charles Schwab. It's a show about the psychology and economics

2:04.9

behind our decisions. We bring you true stories involving high stakes choices and

2:10.0

then we explore the latest research in behavioral science

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