A Theory of Choice Overload by Sarah Auster

Join us for another event in the Microeconomics Research Seminar Series, Autumn Term 2024.

Sarah Auster, from the University of Bonn, will present their research on A Theory of Choice Overload.

Abstract

This paper revisits the classic Pandora’s box problem, studying a decision-maker (DM) who seeks to minimize her maximal ex-post regret. The DM decides how many options to explore before choosing one or taking an outside option. We characterize the regret-minimizing search rule and show that the likelihood of opting out often increases as more options become available for exploration. Our model thus predicts `choice overload,’ the phenomenon by which a default alternative is more likely to be chosen in larger choice sets.

This seminar will be held in the Economics Common Room on Friday 8 November at 3.30pm. This event is open to all levels of study and is also open to the public.

To register your place and gain access to the webinar, please contact the seminar organisers.

This event is part of the Microeconomics Research Seminar Series.