A person overwhelmed by decision fatigue, depicted as a vortex of information pulling at their brain.

Decision Fatigue: Are Trade-offs Overloading Your Brain?

Nico Varela in Mind & Education August 2025 • 4 min read.

"New research reveals how the complexity of choices, from financial planning to daily purchases, can lead to mistakes and what you can do about it."

Every day, we face a barrage of decisions, from the mundane to the momentous. What should I have for breakfast? Which phone plan offers the best value? How should I allocate my retirement savings? While we like to think we approach each choice rationally, a growing body of research suggests that the sheer complexity of these decisions can overwhelm our cognitive abilities, leading to what's known as 'decision fatigue'.

Decision fatigue occurs when the mental energy required to weigh options and make trade-offs depletes our cognitive resources. This can result in poor choices, inconsistency, and a general feeling of uncertainty. Economists and psychologists have long recognized that individuals struggle with navigating complex trade-offs, but a new study is offering a more formal understanding of how these trade-offs affect our decision-making processes.

This study develops a theory around how trade-offs impact what they call ‘comparison complexity,’ and how this complexity leads to errors in choice. The model suggests that options become easier to compare when they involve fewer pronounced trade-offs.

Decoding Comparison Complexity: What Makes Choices Difficult?

A person overwhelmed by decision fatigue, depicted as a vortex of information pulling at their brain.

The study introduces a framework for understanding how our brains handle trade-offs when making decisions. According to the researchers, comparison complexity arises from two key factors:

In essence, the model proposes that our ability to make sound decisions diminishes when we're confronted with options that demand a high degree of cognitive juggling.

Similarity: Options are easier to compare when they are alike feature-by-feature. The more similar the options, the less cognitive effort is needed to assess the differences.
Dominance: Choices are simpler when one option clearly outperforms the others. Clear dominance reduces the need to weigh competing advantages and disadvantages.

To illustrate, think about choosing between two job offers. If one offer has a slightly higher salary but requires significantly longer hours, the trade-off is less pronounced, making it easier to compare than two offers with very different salaries, benefits packages, and work-life balance considerations.

The Path to Simpler Decisions

While the complexities of decision-making can sometimes feel overwhelming, understanding the factors that contribute to decision fatigue is the first step toward reclaiming control. By simplifying our choices, seeking similar options, and recognizing when we're most vulnerable to decision fatigue, we can safeguard our cognitive resources and make choices that align with our goals and values. The key is to acknowledge the limits of our mental bandwidth and strategically navigate the trade-offs that shape our daily lives.

About this Article -

This article was crafted using a human-AI hybrid and collaborative approach. AI assisted our team with initial drafting, research insights, identifying key questions, and image generation. Our human editors guided topic selection, defined the angle, structured the content, ensured factual accuracy and relevance, refined the tone, and conducted thorough editing to deliver helpful, high-quality information.See our About page for more information.

This article is based on research published under:

DOI-LINK: https://doi.org/10.48550/arXiv.2401.17578,

Title: Tradeoffs And Comparison Complexity

Subject: econ.gn q-fin.ec

Authors: Cassidy Shubatt, Jeffrey Yang

Published: 30-01-2024

Everything You Need To Know

What is decision fatigue and how does it impact my choices?

Decision fatigue is the depletion of mental energy required to weigh options and make trade-offs. This depletion leads to poor choices, inconsistency, and uncertainty. When faced with a barrage of decisions, the cognitive resources become overwhelmed, diminishing the ability to make sound judgments. For instance, in financial planning or daily purchases, the accumulation of decisions contributes to this fatigue, potentially resulting in suboptimal outcomes. Understanding decision fatigue is the first step to regain control over the decision-making process.

How does 'comparison complexity' affect my ability to make decisions?

Comparison complexity, as introduced by the study, arises from the trade-offs involved in decision-making. The more complex the trade-offs, the harder it becomes to make a decision. Two key factors are at play: Similarity and Dominance. When options are similar feature-by-feature, comparison is easier, demanding less cognitive effort. Conversely, when one option clearly outperforms others (Dominance), the decision becomes simpler. The model proposes that our ability to make sound decisions diminishes when we're confronted with options that demand a high degree of cognitive juggling.

What are the two key factors that contribute to comparison complexity?

The two key factors are Similarity and Dominance. Similarity refers to how alike the options are feature-by-feature. The more similar the options, the less cognitive effort is needed to assess the differences. Dominance refers to the situation when one option clearly outperforms the others, reducing the need to weigh competing advantages and disadvantages. Both factors help determine the ease with which decisions can be made.

Can you give an example of how trade-offs impact decision-making?

Consider choosing between two job offers. If one offer has a slightly higher salary but requires significantly longer hours, the trade-off is less pronounced, making it easier to compare. In contrast, if the offers vary greatly in salary, benefits, and work-life balance, the more complex trade-offs would increase comparison complexity. The key is recognizing that more complex trade-offs demand a higher degree of cognitive effort, which can exacerbate decision fatigue.

How can I simplify my choices to avoid decision fatigue?

To combat decision fatigue, it's essential to simplify your choices. Recognize and acknowledge the limits of your mental capacity. Seek similar options to reduce the cognitive effort required for comparison. Also, identify situations where you are most vulnerable to decision fatigue, such as when facing numerous trade-offs, to safeguard your cognitive resources. By strategically navigating these trade-offs, you can make choices that align with your goals and values.