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Choiceology with Katy Milkman

Some Assembly Preferred: With Guests Mike Norton & Michael Ojo

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

🗓️ 15 March 2021

⏱️ 36 minutes

🧾️ Download transcript

Summary

Hardware stores and home improvement shows often promote do-it-yourself projects. And while it’s challenging to make your own projects look as good as the ones on TV or in glossy brochures, building something yourself can be a very rewarding experience. The trouble is, the DIY approach can sometimes cloud your perceptions of the value of your project. In this episode of Choiceology with Katy Milkman, we look at how putting personal effort into something—be it a hand-knit scarf, a new deck, or even a small business—can lead people to overestimate the value of that effort.

Transcript

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0:00.0

There. I'm finished. Um, just give me a second. I want to come up and have a look at it.

0:14.4

I finished it. Oh, excellent. Uh, although it's a little bit crooked. I think it's fine.

0:21.5

I don't know. I mean, I still think we should hire that carpenter. No, no. This is better. Look.

0:26.4

I mean, I did it myself. Yeah, but you scratch the top a little bit. You see them there? Oh,

0:30.8

you'll never see that. I mean, once the books are on it, there's real satisfaction in completing a

0:36.0

do-it-yourself project. You can learn some new skills, maybe save a bit of money, and you get

0:42.3

bragging rights when it's all finished. But this DIY approach can also lead to some irrational

0:48.5

perceptions about the things you built, whether that's a bookshelf, a house, or even an airplane.

1:08.4

I'm Dr. Katie Milkman, and this is Choiceology, an original podcast from Charles Schwab.

1:14.5

It's a show about the psychology and economics behind our decisions. We bring you true stories

1:20.0

involving high-stakes moments, and then we explore the latest research and behavioral science

1:25.2

to help you make better judgments and avoid costly mistakes.

1:43.8

My name is Michael Ojo. I guess you can call me a pilot influencer.

1:48.7

Michael Ojo has been an aviation enthusiast since he was a kid. I grew up in Lagus, Nigeria,

1:55.3

and when we were kids, going to school was a chore. And by that, I mean, usually we would walk

2:02.8

to school, and it wasn't because there wasn't a car. It was usually because the roads were so bad

2:09.7

that the cars were unable to drive on them. And oftentimes, I would see airplanes flying,

2:16.7

walking to school, and I used to envy, you know, the people in that thing, whatever that was.

2:22.1

Michael dreamed of taking to the skies. His first flight was a big one.

2:29.5

The very first time that I actually stepped in an airplane was when I was 12 years old,

2:34.4

coming here to the United States. And I thought to myself, like, this thing is huge,

2:39.8

and I was so fascinated by the fact that this tiny object that I've been staring at all this time

...

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