Is choice good?
Choice can be an extraordinary benefit or an immense burden, a paper by behavioural economist and co-author of Nudge Cass Sunstein says. In The Policymaker’s Dilemma, Sunstein writes about the power of “the default option“ and says there are situations in which people might be better off not making a choice. He lays out a cost of decisions and cost of errors framework to help policymakers solve the dilemma of whether to set a default option or force a choice.
A luxury paradox
Global demand for luxury goods is strong and rapidly growing, Psychology Today blogs but buying them may create a paradox. Blogger and academic Brent McFerran writes that research found people often buy luxury goods because they feel they have accomplished something – but he warns that such items may actually send a signal of arrogance to others.
High mortgage, more stress?
Even if offered a large mortgage, new research suggests it can pay to think about how borrowing a lot of money might impact other parts of life. The research of homeowners in the United States found borrowers with high mortgage loan to home value (LTV) – defined as 80% or above – had more “depressive symptoms” and a higher incidence of high blood pressure but, interestingly, there was no effect on subjective well-being.