Economics of Choice

Economics of Choice

Every small action, like a grain of sand, might seem insignificant on its own. But when many people act together, these small choices can reshape entire industries and even impact our environment. Consider how individual choices in food, fashion, and household products have led to widespread shifts over time.

Small Changes Lead to Big Trends

Take coffee, for example: when everyone starts buying a particular blend, it quickly becomes the most popular choice, and similar options soon flood the market. Or look at fashion—when an actor wears a certain outfit in a movie, it often sparks a trend, and suddenly, similar styles are everywhere. While one person’s actions may feel insignificant, when trends catch on, they can shift entire markets. For example, the rise of veganism has led to a surge in plant-based options. With more vegetarians, restaurants have moved from offering a single option to providing diverse, plant-based menu items.

Eco-Friendly Products

Deodorant is another example. Once, store shelves were dominated by aerosol-based deodorants. As people sought eco-friendly options, roll-ons became popular, and today, refillable and vegan options are mainstream. The cleaning aisle has seen similar changes, with refillable and reduced-plastic packaging now commonplace. A few years ago, I had to buy a full plastic bottle for floor cleaner; now, I can buy a smaller, eco-friendly refill packet.

Personally, I’ve transitioned to refillable products—from cleaning supplies to deodorant—and now use eco-friendly soaps for skincare and showering. With simple changes like just adding water, I can get the same cleaning results with less packaging. Switching to soap for my hygiene routine has left my skin feeling more hydrated, without the dryness that comes with other products. Now, I even have choices in eco-friendly deodorants with a variety of scents. While change can be slow, it’s steady. There are many ways to encourage new behaviours, whether through incentives, accessibility, or raising awareness. Economics essentially studies people making choices based on their environment, and many of these choices are made simply because they’re easier or more affordable.

Economic Trade-Offs and Industry Impact

However, these shifts often come with trade-offs. For example, as we use less oil for plastics, demand in the oil industry decreases, which can lead to job conflicts for those working in the field. Moving away from plastic packaging towards cardboard is another trend, but it requires more water and energy for production, which has its own environmental impact. As traditional retail faces challenges from the rise of online shopping, campaigns worldwide are proposing levies on online shopping to help protect jobs in physical retail. In response, some stores have blended elements of online shopping into their offerings—for instance, “click and collect” services allow people to research items online and view them in-store. These stores increasingly function like warehouses supported by vast logistics networks. The Covid pandemic accelerated this trend, and home delivery is now the standard for many shoppers. Even my razors now arrive directly at my door, and I can send them off for recycling.

Small Choices, Big Impact

Next time you’re making a choice—whether it’s about food, fashion, or an everyday product—remember that even small decisions add up. Every choice we make can contribute to a larger movement toward meaningful change. When I’m in the store, I find myself considering more than just price and quality these days—sometimes leading me to have a bit of a “staring contest” with a product as I weigh my choices.