I just wanted a new TV.
A sleek, 55-inch QLED with razor-thin bezels. Nothing extravagant—just an upgrade.
Then, my old Xbox One looked outdated. The controllers didn’t work, so I thought, Why not get a PS5 instead?
Next, the sound felt off. No bass. A SONOS Beam would fix that—£499 well spent.
And just like that, a simple purchase turned into a spending spiral.
It’s called the Diderot Effect, and it explains why one upgrade often leads to another… and another.
Decoding the Diderot Effect: A Tale of Identity and Consumption
So, what is the Diderot Effect? It is a social phenomenon, mostly related to consumer goods and hinges on two ideas:
😎 Identity-Reflective Purchases: It suggests that the items we buy are more than just objects; they’re extensions of our identity. Each piece we own harmonises with our self-image.
😍 Consumption Cascade: Introducing a new, distinct item into our collection can disrupt this harmony, leading to a cascade of additional purchases, all in an effort to restore balance.
Essentially, the Diderot Effect explains why we buy things we don’t need and how one purchase often leads to more, as we seek harmony in our possessions.
🚨 Quick sidebar: Enjoying what you’re reading? Sign up for my newsletter to get similar actionable insights delivered to your inbox, for free!
Psttt, you will also get a free copy of my ebook, Framework for Thoughts, when you sign up!
The Origin Story: Coined by Grant McCracken
The Diderot Effect wasn’t named by Diderot himself. It was coined in 1988 by anthropologist Grant McCracken, who saw a deeper pattern in our buying habits.
In his book Culture and Consumption, McCracken explored how a single purchase can trigger a chain reaction, much like Denis Diderot’s infamous scarlet gown (more on that below!). What starts as a simple upgrade quickly becomes a transformation, as we chase a sense of harmony between our possessions and identity.
It’s not just shopping. It’s storytelling… one purchase at a time.
The Scarlet Spiral: The Birth of the Diderot Effect in a Scarlet Gown
Denis Diderot had always lived simply. A bohemian writer in Paris, he spent years struggling financially, until Empress Catherine the Great changed his fate. In 1766, she paid him 50,000 francs to serve as her librarian, lifting him out of poverty overnight.
That’s when it all started.
With his newfound wealth, Diderot received a gift: a luxurious scarlet dressing gown. It was elegant, refined… too refined. Suddenly, everything else he owned looked shabby in comparison.
“All is now discordant. No more coordination, no more unity, no more beauty,“ he wrote in his essay, Regrets On Parting With My Old Dressing Gown.
So he upgraded. A new rug from Damascus. A Moroccan armchair. Intricate sculptures. An expensive clock. One purchase led to another, each made in pursuit of harmony.
Until, eventually, he went bankrupt. 🫠
I was the absolute master of my old robe. I have become the slave of my new one.
Denis Diderot
When Possessions Shape Identity
Life has a natural tendency to become filled with more. We are rarely looking to downgrade, to simplify, to eliminate, to reduce. Our natural inclination is always to accumulate, to add, to upgrade, and to build upon.
James Clear
Our possessions aren’t just things; they shape our identity. Clothes, furniture, cars, they signal our place in the world. And once we upgrade one, the rest suddenly feel out of sync.
Diderot’s scarlet gown wasn’t just an indulgence. It altered how he saw himself, making everything else seem unworthy. So he upgraded. And upgraded. Until he realised he was happier before it all began.
The real question is: do your purchases bring freedom or just another layer of discontent?
From IKEA to iPhones: Everyday Examples of the Diderot Effect in Action
Let’s look at another example of the Diderot effect in our daily life. We already saw how the Diderot Effect affected me with the purchase of my new TV.
The Diderot Effect is also the reason you see IKEA products grouped into brands. You go in to replace an old wardrobe, find the HEMNES 3-drawer chest, and end up buying the HEMNES side table, table, lamp, TV stand, shoe rack, and of course, new plants! 🪴
We can also see the Diderot Effect in the technology ecosystem. Do you have friends who recently purchased an iPhone? You might have observed they purchased AirPods, Apple Watch, and AirTags shortly after that. 💸
Sure, these Apple ecosystem purchases can be attributed to the seamless integration of Apple products and the network effects but it’s also the Diderot Effect at play. It’s the introduction of a new possession leading to spiralling consumption.
Recognising these everyday examples is the first step in learning how to overcome the Diderot Effect.
Mastering Your Spending: Practical Strategies to Overcome the Diderot Effect
Navigating the tricky waters of consumer behaviour can be challenging, especially when the Diderot Effect lurks around every corner of our spending habits. But fear not! Here’s how you can overcome the Diderot Effect and break free:
📝 Prioritise Needs Over Wants
A practical approach to overcome the Diderot Effect is by distinguishing between ‘needs’ and ‘wants.’ Before making any purchase, assess whether it is a necessity or just a desire. This helps in avoiding unnecessary acquisitions that are often prompted by the Diderot Effect. For example, buying a new phone only when the old one is beyond repair, rather than upgrading for the sake of new features.
My article on mimetic desires will help understand the difference between needs vs. wants.
🔄 One-In, One-Out Rule
Implement the ‘one-in, one-out’ rule to keep your possessions in check. Whenever you buy something new, choose something old to give away or discard. This method not only curbs the accumulation of unnecessary items but also helps in maintaining a clutter-free environment. For instance, if you buy a new pair of shoes, donate an older pair that you no longer wear.
👥 Seek Support
Discussing potential purchases with friends or family can provide a fresh perspective and help in identifying if you’re falling prey to the Diderot Effect. Sometimes, an external viewpoint can point out if a purchase is unnecessary or influenced by momentary desires. This could be as simple as asking a friend their opinion before buying a new gadget.
📊 Track Spending
Regularly monitoring and reviewing your expenses can help in recognizing patterns of unnecessary spending. Keeping a record of purchases enables you to see where your money is going and whether your spending aligns with your financial goals. For example, using a budgeting app to track monthly expenses can highlight areas where the Diderot Effect might be influencing your purchasing decisions.
Reducing your spend will help you save more and then the Matthew Effect will take care of the rest!
🏆 Celebrate Small Wins
Acknowledge and celebrate when you successfully avoid impulse purchases or unnecessary upgrades. This reinforces positive behaviour and makes it easier to resist the Diderot Effect in the future. Celebrating doesn’t mean spending money; it could be as simple as acknowledging your self-control or treating yourself to a favourite activity at home.
Charting a Course Through the Tempting Seas of the Diderot Effect
In conclusion, as we navigate the alluring world of consumerism, remember that the Diderot Effect is a silent persuader, subtly shaping our buying decisions. By understanding and acknowledging the Diderot Effect, we can make more mindful decisions, avoiding the pitfalls of unnecessary consumption
Let my example teach you a lesson. Poverty has its freedoms; opulence has its obstacles.
Denis Diderot
Let’s take a page from Denis Diderot’s experience: sometimes, the quest for more leaves us longing for the simplicity we once had.