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Pandora’s Box Reopened: Robust Search and Choice Overload

Author

Listed:
  • Sarah Auster

    (University of Bonn, Department of Economics & CEPR)

  • Yeon-Koo Che

    (Department of Economics & Columbia University)

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 and in what order, before choosing one or taking an outside option. Wecharacterize the regret-minimizing search rule and show that the likelihood of opting out often increases as more options become available for exploration. We show that this “choice overload” is driven by the DM’s fear of selection error—the regret from searching the wrong options—suggesting that steering choice via recommendations or cost heterogeneity can mitigate regret and encourage search.

Suggested Citation

  • Sarah Auster & Yeon-Koo Che, 2026. "Pandora’s Box Reopened: Robust Search and Choice Overload," ECONtribute Discussion Papers Series 434, University of Bonn and University of Cologne, Germany.
    • Handle: RePEc:ajk:ajkdps:434
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    File URL: https://www.econtribute.de/RePEc/ajk/ajkdps/ECONtribute_434_2026.pdf
    File Function: First version, 2026
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    More about this item

    Keywords

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    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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