More Choice Is Desirable To Less - Essay Example

This essay wishes to examine an issue that plays an important role in various social debates around the world. The issue under consideration is whether having more choices is far much desirable, when compared to having few choices (Vuchinich, 2003). The notion that having more choices is preferable when compared to a few choices is shared and believed by not only economists, but by also political philosophers, and sociologists. Therefore, the main argument of this paper is that having more choices, is more preferable, when compared to having limited choices. In meeting the objectives of this paper, this paper will use the rational choice theory to provide an explanation on the reasons why having more choices is beneficial, when compared to limited choices. Rational choice theory is a theoretical application which assumes that people will make good choices, that gives them the greatest satisfaction and benefit (Archer, 2001). These choices will always work, in accordance to their interests. It is important to explain that resources are scarce, and because of their scarcity, there is an increase in the demand of using these resources. Based on this factor, some of the services provided by stakeholders are limited; hence customers have little choices on the kind of service to choose or access. However, it is important to explain that expanded choices have the capability of creating utility to people. Utility refers to the ability of a good or product to satisfy the needs and wants of people. The availability of more choices normally has an impact of creating utility, and this is because people will have a variety of products to choose from, which in turn may help in the satisfaction of the needs of the people under consideration. Take for example; people may have different tastes in the movies that they watch. One individual may love different movies, at different times. For instance, after working hard for about one week, an individual may prefer to watch comedy for entertainment. On a Sunday, the same person may prefer to watch a serious drama (Fadem, 2005). This is because he would achieve utility or satisfaction, only if he or she watches movies on these days. Based on these facts, movie theaters that offer a wide range of movies have the capability of satisfying these needs and wants (Hoxby, 2003). Based on the principles of rationale choice theory, an individual would choose to watch a movie that best suits his or her needs. The second benefit is that when people are presented with a variety of choices, it would be beneficial if it would promote competition amongst the providers of the service or products (Cameron, 2002). It is important to explain that competition in a business environment is healthy, and this is because it may lead to a reduction in prices, and an improvement in the quality of the service or product under consideration (Lichbach, 2003). Take for example, Gasoline, which is a standard product. Gasoline has about three grades, and there prices are easy to compare. Consumers therefore benefit from this situation, and this is mainly because they have choices to make, regarding the type of gasoline to buy (Parker, 2010). This would in turn reduce the prices of gasoline to the benefit of the consumers, and the economy. However, for the benefits of competition to be realized, consumers have to have knowledge on the quality and price of the product or service under consideration (Eriksson, 2011). This is likely to happen if it is easy to compare the differences in quality and price. To a certain degree, companies normally use marketing for purposes of misleading their customers on the quality and price of the products under consideration (Swanson and Kim, 2007). For instance, long distance telephone companies normally spend a considerable amount of money, for purposes of convincing their consumers that they provide cheap services (Fadem, 2005). It is important to explain that when choices are limited, then it is possible to say that there is scarcity of resources. When products are scarce, people are always guided by the concept of rational choice theory, in choosing a product that would best satisfy their needs. This means that the choices of people are limited, and they will only seek to buy or purchase the most essential elements. This has an impact of increasing the prices of the products under consideration (Lichbach, 2003). Scarcity is able to limit the manner which an individual is able to satisfy their needs and wants. Furthermore, because people have limited income, they are unable to effectively use their money to buy anything they want. It is important to explain that where scarcity exists, the choice must also be in existence. This is because people will choose the products they want, based on the scarce resources that they command (Martin, 2001). Scarcity is therefore a factor that directly impacts on the kind of choices that people make. However, it is important to explain that it is more beneficial when individuals have more resources to choose from, as opposed to limited resources (Cameron, 2002). This is because more choices normally help in the satisfaction of needs, or achievement of utility. This means that there would be a variety of products and services that have the capability of satisfying the various needs of people (Cartwright, 2011). Companies such as Apples, Samsung, Microsoft, are successful because they offer a variety of electronic products and software. This makes it possible for their target customers to choose the product that best satisfies their needs and desires. Based on this fact, a company that produces a variety of products will gain a competitive advantage, over companies that are engaged in the production of a single product (Lichbach, 2003). This is because the company under consideration will have a wide range of customers. Furthermore, it is important to understand that when customers have a choice in choosing a product, there will be an increased competition within the market (Scruggs, 2012). This will help in eliminating monopolies, most of which are accused of exploiting their customers through increased prices, and low quality products. Despite the error, time and psychic costs of associated with having more choices; it is more beneficial for these choices to exist (Diamond, 2007). Take for example, in a service that has limited costs. A good example of that service is the social security program. Social security programs normally do not offer any choice to workers. Workers are normally covered, because their employers have an obligation of deducting these contributions to the scheme. However, workers do not have any choice, on how these funds are managed. The only choice they have is on the time, they would take to claim the benefits, once they reach the eligibility age. However, there is a proposal, aimed at making workers to be allowed on choosing how their money would be invested, and managed (Hoxby, 2003). By being allowed to have this choice, these workers will have a sense of ownership of the program, and this is because they would have the responsibility of managing their own social funds (Cameron, 2002). It is important to understand that currently, retirees may be disappointed, with the rates of benefits they enjoy. However, these feelings of disappointment would be less painful, when these employees were allowed to manage and invest their money. However, Hoxby (2003) explains that it is far much better to be disappointed on the rate of returns a retiree gets, when compared to the regrets a retiree would get, for poor investment decisions. It is important to explain that according to the rational choice theory, an individual would make choices that are to his or her self interests. These choices are aimed at either benefiting him or her in the short or in the long run. Therefore, this aspect of regret would not occur (Cartwright, 2011). All that is needed is for an efficient structure or mechanism should established, to advise workers on how best to invest their money. Through this structure, employees or workers would manage to act in a rationale manner, hence make a decision that carter for their self interest. In making a decision on whether it is beneficial to have high choices, there is a need of asking whether the costs of having more choices, outweigh the benefits of having more choices. Under this scenario, the benefits of having more choices, outweigh, its costs. This is based on the fact that more choices would lead to the satisfaction of the need of people, and it would improve competition amongst companies, resulting to the development of a high quality product, and low prices. Furthermore, people are always motivated by what best suits their needs. This is while they are in the process of making decisions. Having more choices would enable an individual to choose an issue, product or activity that satisfies his or her needs. This, manages to satisfy one of the important elements of the rationale choice theory. Bibliography: Archer, M. (2001). Rational choice theory resisting colonization. London: Routledge. Top of Form Bottom of Form Cameron, S. (2002). The economics of sin rational choice or no choice at all? Cheltenham, UK: Edward Elgar. Top of Form Bottom of Form Cartwright, E. (2011). Behavioral economics. London: Routledge. 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