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  • Clearer Thinking Team

Denomination Effect: Definition, Examples and Effects

The Less-Is-Better Effect is a phenomenon in which people perceive a smaller number of options as being more desirable than a larger number of options. This effect has been studied in a variety of contexts, from consumer choice to political decision-making. Here, we will explore the definition, examples, and effects of the Less-Is-Better Effect.


Definition: The Less-Is-Better Effect is a cognitive bias in which people perceive a smaller number of options as being more desirable than a larger number of options. This effect is based on the idea that having fewer choices can reduce the amount of effort and time needed to make a decision.


Examples: The Less-Is-Better Effect has been studied in a variety of contexts. For example, in consumer choice, people are more likely to purchase a product when presented with fewer options. In political decision-making, people are more likely to support a policy when presented with fewer options.


Effects: The Less-Is-Better Effect can have a significant impact on decision-making. By reducing the number of options, people are more likely to make a decision quickly and confidently. This can lead to more efficient decision-making and better outcomes. However, it can also lead to people making decisions without considering all of the available options, which can lead to suboptimal outcomes.


Overall, the Less-Is-Better Effect is an important phenomenon to consider when making decisions. By understanding the definition, examples, and effects of this effect, we can make more informed decisions and achieve better outcomes.


Do you want to expand your knowledge on this topic? Read our full in-depth article on cognitive biases.


Do you have extra 15 minutes today? Takeour fun and interactive quiz to learn which of 16 reasoning styles you use, your overall level of rationality, and what you can do now to improve your rationality skills.

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