Crossroads with illuminated paths representing choices within a consideration set.

Is What You See Really What You Get? Unpacking Hidden Choices in Decision-Making

Rhea Morgan in Mind & Education August 2025 • 4 min read.

"Uncover how 'consideration sets' impact your decisions, from everyday purchases to major life choices, and how to make more informed decisions."

In the realm of economics, understanding how individuals make choices has always been a central question. Traditional models often assume that people carefully weigh all available options before deciding. However, this doesn't always reflect reality. We often operate with a limited awareness of the possibilities, a concept economists refer to as 'consideration sets.' These are the subsets of options we actively think about when making a decision, while many other options remain unconsidered.

Imagine standing in front of a grocery store shelf packed with hundreds of different snack bars. Do you honestly evaluate each one before picking your go-to protein bar? Probably not. Instead, you likely consider a small group of familiar brands or those that have caught your eye recently. This act of narrowing down options to a manageable 'consideration set' is a fundamental part of our decision-making process.

New research in economics is diving deeper into the impact of these consideration sets and how they affect our choices and overall well-being. This article explores these new ideas, focusing on how 'exogenous consideration'—where external factors influence what options come to mind—shapes our decisions. Understanding these hidden influences can help us make more informed and satisfying choices in every aspect of life.

What Are Consideration Sets and Why Do They Matter?

Crossroads with illuminated paths representing choices within a consideration set.

The concept of consideration sets challenges the traditional economic view that individuals make decisions by comparing all available options. In reality, our cognitive abilities and the overwhelming amount of information we face force us to narrow our focus. This is where consideration sets come into play.

A consideration set is the limited number of options that a person actively evaluates before making a decision. This set is often much smaller than the total number of available choices. For example, when buying a car, a consumer might only consider a few specific models based on brand preference, prior experience, or recommendations, while ignoring dozens of other cars on the market.

Cognitive Limitations: Our brains can only process so much information at once. Consideration sets help us simplify complex decisions.
Information Overload: With endless choices available, we use shortcuts to filter options.
External Influences: Advertising, suggestions, and social trends shape what enters our consideration set.

Understanding consideration sets is crucial because they directly influence our decisions and, subsequently, our satisfaction. If important or better options are excluded from our consideration set, we might end up making suboptimal choices that don't truly reflect our preferences or needs. This has significant implications for businesses, policymakers, and individuals alike.

Empowering Your Choices: Breaking Free from Limited Consideration

By understanding the power of consideration sets, you can take proactive steps to broaden your horizons and make more empowered decisions. Start by consciously seeking out new information and perspectives. Challenge your assumptions and be open to exploring options outside your usual comfort zone. Whether you're choosing a new job, a healthcare plan, or even just a snack, remember that what you consider shapes what you choose. By taking control of your consideration set, you unlock the potential for greater satisfaction and well-being in all areas of your life.

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.2405.13945,

Title: Exogenous Consideration And Extended Random Utility

Subject: econ.em

Authors: Roy Allen

Published: 22-05-2024

Everything You Need To Know

What are 'consideration sets' in the context of decision-making?

In decision-making, 'consideration sets' are the specific, limited groups of options that individuals actively evaluate before making a choice. Instead of considering all possible choices, people narrow their focus to a manageable subset. This subset, influenced by various factors, is what they base their decisions on. For example, when buying a car, a consumer might only consider a few specific models based on brand preference, prior experience, or recommendations, while ignoring dozens of other cars on the market.

How do 'consideration sets' differ from traditional economic models?

Traditional economic models often assume that people carefully evaluate all available options before making a decision. 'Consideration sets', however, challenge this assumption by recognizing that our cognitive abilities and the overwhelming amount of information we face force us to narrow our focus. Individuals don't, and often can't, consider every choice. Instead, they limit themselves to a subset, or a 'consideration set,' thereby simplifying the decision-making process.

What factors influence the composition of our 'consideration sets'?

Several factors shape our 'consideration sets'. These include cognitive limitations, information overload, and external influences. Cognitive limitations mean that our brains can only process a limited amount of information at once. Information overload, the sheer number of available options, pushes us to use shortcuts. Advertising, suggestions, and social trends also play a key role in determining which options make it into our 'consideration sets'.

Why is understanding 'consideration sets' important for making better decisions and improving overall well-being?

Understanding 'consideration sets' is crucial because they directly influence our decisions, and consequently, our satisfaction. If important or better options are excluded from our 'consideration sets', we might make suboptimal choices that don't truly reflect our preferences or needs. By being aware of the power of 'consideration sets', individuals can proactively seek out new information, challenge their assumptions, and explore options outside their usual comfort zone. This broader perspective can lead to more informed, satisfying choices in all areas of life.

How can individuals actively manage their 'consideration sets' to make more informed choices?

Individuals can take control of their 'consideration sets' by consciously seeking out new information and perspectives. They can challenge their assumptions and be open to exploring options outside their usual comfort zones. This might involve researching alternatives, reading reviews, or seeking recommendations from diverse sources. By proactively expanding the range of options considered, individuals increase their chances of making choices that align with their true needs and preferences, thereby enhancing their overall satisfaction and well-being. It's about recognizing that what you consider shapes what you choose.