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The Dark Side Of Variety: An Economic Model Of Choice Overload, Teeger Li Blasheck, Jawwad Noor

The Yale Undergraduate Research Journal

Choice Overload is a phenomenon well studied in psychology. It goes against the classical ³more is better´ dogma and describes the behavior of an agent when presented with too many options, in which instance an agent may either experience a decrease in satisfaction or end up deferring the choice all together. The standard Utility Maximization model of economics, however, largely follows the classical dogma and is unable to accommodate the behaviors of Choice Overload. This paper seeks to offer two possible economic models for Choice Overload based on the two mechanisms put forward by the psychological literature: search cost and …