Taking the leap of faith

Economist Steven Levitt's experiment shows that when faced with difficult decisions, you will probably feel better choosing action over maintaining the status quo.

Taking the leap of faith
Photo by Walker Fenton / Unsplash
An economist’s rule for making tough life decisions
“Whenever you cannot decide what you should do, choose the action that represents a change.”
QuartzGizmodo

In a Quartz article by Sarah Todd, economist Steven Levitt's study, published in the Review of Economic Studies, addresses making tough life decisions by advocating for action over maintaining the status quo.

Levitt's experiment involved participants facing difficult decisions, like leaving your job, or buying a new house, using a randomized digital coin toss. The results showed that those who made changes reported greater happiness six months later. Despite potential biases and limitations, Levitt suggests that when uncertain, choosing change can be beneficial.

This advice is particularly relevant during uncertain times, such as the Covid-19 pandemic, which has already forced many to reconsider their life choices. The study underscores the often-overlooked potential for positive outcomes through taking action in the face of indecision.