It was November 2024 when I decided to upgrade my phone. My OnePlus had served me faithfully for nearly five years with barely any performance drops. Though the battery drained a bit faster these days, the rapid charger made it manageable. Still, I yearned for an iPhone, mainly for its perfectly smooth video stabilisation (you know how good it is) and to keep up with the latest tech. So off I went to the Apple Store.
You might not believe this, but my old Android was far smoother and more intuitive than the iPhone. Within two days of purchase, I was thoroughly frustrated with my decision. Then came the Google Pixel.
Here’s something fascinating about the EU that many don’t know: you can return almost anything within 30 days if you’re not satisfied, provided it’s in its original condition. Rather mad, isn’t it? The ability to purchase whatever catches your fancy, try it out, and simply return it? (People buying TVs in December and returning in January is quiet common I guess).
Two days after my iPhone purchase, I ordered the Google Pixel at half price during a Black Friday sale. Being the Android fanboy I am, receiving the Pixel was pure joy. It felt more natural in my hands and outperformed the iPhone in every aspect, save for that video stabilisation I mentioned. Yet a week later, I shipped the Pixel back for a full refund. The iPhone stayed in my pocket.
But why? I’d ditched the phone I adored, one that felt right and cost half as much. Surely there must be some psychology at play? Intrigued, in the 2nd week of November, I went to the library looking for a book about this, and I found one of the best sellers. “The Paradox of Choice: Why More is Less.”.
Some notable highlights:
“Once something is given to you, it’s yours. Once it becomes part of your endowment, even after a very few minutes, giving it up will entail a loss. This phenomenon is called the endowment effect.”
“Some studies have estimated that losses have more than twice the psychological impact as equivalent gains. The fact is, we all hate to lose, which Kahneman and Tversky refer to as loss aversion.”
Simply put, the iPhone had been in my hands longer. (While writing this, I couldn’t help but think of Frodo Baggins from Lord of the Rings.)
Now, about that Marshall. In January 2025, I decided to upgrade my bedroom sound system. My MacBook has decent audio, and I had a perfectly good Google Nest Speaker. Yet the maximiser in me couldn’t resist. That’s how this Marshall ended up on my shelf, in my modest bedroom where I can’t even turn the volume past 50%. Am I even that discerning a listener? Rather a poor choice, I’d say.
But this isn’t Sri Lanka; poor purchasing decisions aren’t permanent here. Don’t fancy something? Simply return it and reclaim your money. Straightforward enough, right? Did I, though?
No, I wavered. Then I recalled “The Paradox of Choice”:
“The endowment effect helps explain why companies can afford to offer money-back guarantees on their products. Once people own them, the products are worth more to their owners than the mere cash value, because giving up the products would entail a loss. Most interestingly, people seem to be utterly unaware that the endowment effect is operating, even as it distorts their judgement.”
Reading books isn’t enough; writing about them isn’t enough; discussing lessons learned isn’t enough. I’ll likely make the same mistake again. So I kept the Marshall. It will serve as a constant reminder of my financial irresponsibility and susceptibility to psychological traps. Somehow, writing this makes me feel less guilty. The End!
📖 Reference
- The Paradox of Choice by