Research on judgment and decision making typically studies “small worlds”—highly simplified and stylized tasks such as monetary gambles—among homogenous populations rather than big real-life decisions made by people around the globe. These transformative life decisions (e.g., whether or not to emigrate or flee a country, disclose one’s sexual orientation, get divorced, or report a sexual assault) can shape lives. This article argues that rather than reducing such consequential decisions to fit small-world models, researchers need to analyze their real-world properties. Drawing on principles of bounded and ecological rationality, it proposes a framework that identifies five dimensions of transformative life decisions: conflicting cues, change of self, uncertain experiential value, irreversibility, and risk. The framework also specifies simple, versatile choice strategies that address these dimensions by, for instance, breaking down a decision into steps, avoiding trade-offs between present and future selves, or sampling others’ experiences. Finally, it suggests benchmarks for assessing the rationality of transformative life decisions. Methodologically, this framework adapts a long tradition of mainly lab-based judgment and decision-making research to a text-based approach, thereby setting the stage for empirical work that analyzes real-world decisions using natural-language processing. Only by understanding decisions with the potential to transform life trajectories—and people in the process—will it be possible to develop encompassing and inclusive theories of human decision making.
