May 28, 2021 -

From the Editor's Desk

An Economist's Rule for Making Tough Life Decisions

"Whenever you cannot decide what you should do, choose the action that represents a change."

Changing your life is a big deal. It takes a lot of work and emotional energy. And it's often very difficult to predict if a dramatic turn will actually make us happier and more fulfilled, or if it will be the biggest mistake ever and we'll shrivel up into little raisins of regret.

So we waffle over whether or not to quit a job, change careers, start a business, or go back to school, weighing endless pros and cons. In behavioral economics, this phenomenon is known as status quo bias. People are generally predisposed to favor sticking with their current circumstances, whatever they may be, instead of taking a risk and bushwhacking their way toward a different life.

That's an instinct we should fight against, according to the findings of a new study by Steven Levitt, University of Chicago economist and Freakonomics co-author, published in Oxford University's Review of Economic Studies.

Continued here

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