What do we need to know about who? What organization is deciding and what choices were presented? What can we do to learn about them to inform our decision? What are their incentives? Incredible.īen Felix: It's not that you, if you've taken a marketing class, you've scratched the surface, at least on this topic that you're affected by marketing by how options are presented to you and how information is presented to you, but it's pretty mind-blowing to hear the depth of that effect and the research that's been done on it on all the different elements of choice, as the book is titled.Ĭameron Passmore: Exactly. Man, there are so many mind-blowing observations and learnings from this conversation, which I know you agree, because we talked about it, about how we are presented with the options impacts how we decide. We just had an incredible conversation with Eric to talk about how we were presented with the choice, options, or the choice architecture, how that impacts how you make a decision. You might recall that name from back in episode 229, when we did a book review on The Elements of Choice that he wrote, Why the Way We Decide Matters. This week, we are talking specifically about a huge part of financial decision-making with an unreal guest, Professor Eric J. In the intro and you said these now 240 times, financial decision-making. We are hosted by me, Benjamin Felix and Cameron Passmore, portfolio managers at PWL Capital.Ĭameron Passmore: Okay, Ben. (0:50:12)īen Felix: This is the Rational Reminder Podcast, a weekly reality check on sensible investing and financial decision-making from two Canadians. What financial advisors can do to be most useful to their clients. How to minimize the influence of the choice architect.

(0:40:08)Įric shares his philosophy on free will and the factors impacting our choices. The impact of social media on people’s attention and intentions. The effectiveness of Netflix as a choice engine, the role choice engines play in educating users, and the value of just-in-time education. How exponential growth bias influences long-term decisions and how financial advisors can help clients understand the impact. How the order of options being presented and the way they’re described impact decisions. The influence of sorting on what people choose. How choice architecture can help people find the right choice. The impact of default choices and what influences them. (0:12:15)įactors impacting the effort required to make a decision. The impact of recent events on decision-making. (0:06:00)Īdvice for making important decisions. The plausible path: what it is and how we choose it. The hidden partner that accompanies us when we make decisions. Johnson and this week’s topic: financial decision-making.

Eric johnson the elements of choice