Choice, Education and Experience
Decision making, the challenge of choice, is often discussed as though it’s a single, invariant type of event. Perhaps this is most strongly presented in the idea of stable preferences, the idea that if we choose to eat the fish at a restaurant one day then we should choose it the next day as well, always assuming we liked it. People don’t actually behave like this, and decision making is much more complex than economics often makes out.
However, we can roughly divide our choice processes into two – decisions we make from personal experience and decisions we make from education. We may invest in banks because we've had a good experience doing so, but we may choose to limit our investments based on third-party knowledge that financial institutions are inherently risky. But how we decide which model to follow can change the course of our lives; and certainly determine the health of our wealth.