Designing a sequential choice architecture to reduce choice overload
AbstractPrevious studies have demonstrated that a multitude of options can lead to choice overload, reducing decision quality. Through controlled experiments, we examine sequential choice architectures that enable the choice set to remain large while potentially reducing the effect of choice overload. A specific tournament-style architecture achieves this goal. An alternate architecture in which subjects compare each subset of options to the most preferred option encountered thus far fails to improve performance due to the status quo bias. Subject preferences over different choice architectures are negatively correlated with performance, suggesting that providing choice over architectures might reduce the quality of decisions.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 38173.
Date of creation: 13 Apr 2012
Date of revision:
choice architecture; choice overload; status quo bias; self-sorting; decision making; experiments;
Other versions of this item:
- Tibor Besedes & Cary Deck & Sudipta Sarangi & Mikhael Shor, 2012. "Designing a Sequential Choice Architecture to Reduce Choice Overload," Working papers, University of Connecticut, Department of Economics 2012-24, University of Connecticut, Department of Economics.
- D03 - Microeconomics - - General - - - Behavioral Microeconomics; Underlying Principles
- C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-04-23 (All new papers)
- NEP-CBE-2012-04-23 (Cognitive & Behavioural Economics)
- NEP-DCM-2012-04-23 (Discrete Choice Models)
- NEP-EXP-2012-04-23 (Experimental Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Schram, Arthur & Sonnemans, Joep, 2011. "How individuals choose health insurance: An experimental analysis," European Economic Review, Elsevier, Elsevier, vol. 55(6), pages 799-819, August.
- Tibor Besedes & Cary Deck & Sudipta Sarangi & Mikhael Shor, 2010.
"Age Effects and Heuristics in Decision Making,"
Discussion Papers of DIW Berlin
1047, DIW Berlin, German Institute for Economic Research.
- Sudipta Sarangi & Tibor Besedes & Cary Deck & Mikhael Shor, . "Age Effects and Heuristics in Decision Making," Departmental Working Papers, Department of Economics, Louisiana State University 2009-03, Department of Economics, Louisiana State University.
- Julie Agnew & Pierluigi Balduzzi & Annika Sundén, 2003. "Portfolio Choice and Trading in a Large 401(k) Plan," American Economic Review, American Economic Association, American Economic Association, vol. 93(1), pages 193-215, March.
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