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Trading off the benefits and costs of choice: Evidence from Australian elections

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  • Nagler, Matthew G.

Abstract

I investigate the robust predictions of a theory on the costs and benefits of dealing with increased numbers of choices in an election context. My data consist of a rich array of measures of voting behaviors and corresponding ballot and voter population characteristics for a panel of electoral districts from three Australian federal election cycles. I examine how the number of candidates and voting tickets on the ballot, as well as key moderating variables, affect the share of voters (1) opting for a simplified alternative to the baseline voting process; and (2) intentionally casting an invalid ballot. The findings indicate that incremental options can increase or decrease motivation to engage in a choice process; the overall pattern of results appears consistent with a diminishing returns model of expanded choice. Voters appear to trade off costs and benefits rationally in their decisions concerning how and whether to make choices. Public policies and private strategies should leverage moderating variables to encourage participation in choice processes and should account for opt-out tendencies at both ends of the choice spectrum.

Suggested Citation

  • Nagler, Matthew G., 2015. "Trading off the benefits and costs of choice: Evidence from Australian elections," Journal of Economic Behavior & Organization, Elsevier, vol. 114(C), pages 1-12.
  • Handle: RePEc:eee:jeborg:v:114:y:2015:i:c:p:1-12
    DOI: 10.1016/j.jebo.2015.03.004
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Mikhalishchev, Sergei, 2023. "Optimal menu when agents make mistakes," Research in Economics, Elsevier, vol. 77(1), pages 25-33.
    2. Chengguang Li & Rodrigo Isidor & Luis Alfonso Dau & Rudy Kabst, 2018. "The More the Merrier? Immigrant Share and Entrepreneurial Activities," Entrepreneurship Theory and Practice, , vol. 42(5), pages 698-733, September.
    3. Ong, David, 2021. "Predicting choice-averse and choice-loving behaviors in a field experiment with actual shoppers," Journal of Economic Behavior & Organization, Elsevier, vol. 188(C), pages 46-71.
    4. David Ong, 2021. "Choice averse behavior and sampling risk: a field experiment with actual shoppers," Framed Field Experiments 00547, The Field Experiments Website.
    5. Wellalage, Nirosha Hewa & Fernandez, Viviana & Bui, Trang, 2023. "Immigration and entrepreneurship: Is there a uniform relationship across countries?," International Review of Economics & Finance, Elsevier, vol. 85(C), pages 270-285.
    6. Schreiner, Nicolas, 2021. "Changes in Well-Being Around Elections," Working papers 2021/03, Faculty of Business and Economics - University of Basel.

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    More about this item

    Keywords

    Individual decision-making; Choice overload; Voter participation; Motivation; Panel data;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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