I’m a fan of the various versions of the TV reality show House Hunters. No, I’m not looking, and no, I’m not into granite countertop and hardwood floors (okay, I have both) or other modern must-haves like farm sinks and stainless steel appliances (where would I put all my souvenir refrigerator magnets?).  I like the show because it illustrates the process of choice, and I’m an economist, so making good choices is what my vocation all about.

 I’m sure they probably consider more than three houses, but the format of the show is that they bring it down to the final three.  And for each one, the choice comes down to no more than three attributes.  Price and location dominate. Layout. Enough bedrooms. Entertaining space. Yard size.  Typically, it will be price and location and some third quality that might vary from house to house (#1 has a pool, #2 has a big yard, # 3 has enough bedrooms…). It is an exercise in what economist Herbert Simon called bounded rationality.  Too many houses, too many attributes, and they will spend another year or two in the crowded apartment.  Always, at the end of the show we revisit the house hunters in their new digs six weeks or six months later and they are satisfied with their choice. You have to wonder if they ever aired a show that ended up in buyers’ remorse.

It’s a useful exercise that any of us could replicate in buying a car, changing jobs, having a baby, getting married (not necessarily in that order), moving to a different town.  We start with a long list of attributes. One way is to make it a binary choice—change, move, quit, marry) or stay with the status quo?  Once we have opted for change, we are a branch down the decision tree.  What do we want in the new situation?  Which attributes matter more? Be near the city for her, or the job for him (or vice versa)? More indoor space or more outdoor space? Move-in ready or fixer upper?

If you have big decisions coming up, and especially if there is a partner involved with a different list of attributes, , I suggest a few episodes of House Hunters.. It can help you think through your decision-making process and wind up with a more satisfying outcome,