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Choice or information overload ?

Author

Listed:
  • Fabrice Le Lec

    (CES, Université de Paris 1, France)

  • Marianne Lumeau

    (CEPN, Université de Paris 13, LABEX ICCA, France)

  • Benoît Tarroux

    (CREM, UMR CNRS 6211, Faculté des Sciences Économiques, Université de Rennes 1, France)

Abstract

This paper aims to test how the profusion of choice and information affects individuals' decisions. In particular, we investigate whether the possible choice overload effects are due to the mere presence of many alternatives or the difficulty in processing abundance of information that comes with the proliferation of options. To do so, we use the frequency with which familiar alternatives are preferred to unfamiliar ones as a behavioural measure of overload. We first propose an individual decision model, in which uncertainty about values of alternatives leads consumer to prefer familiar goods. We use this theoretical approach to devise an experiment where the level of information and the number of alternatives systematically vary. Our results show that individuals are prone to overload in the presence of larger choice sets, but that information has a small impact, if any.

Suggested Citation

  • Fabrice Le Lec & Marianne Lumeau & Benoît Tarroux, 2016. "Choice or information overload ?," Economics Working Paper Archive (University of Rennes & University of Caen) 2016-07, Center for Research in Economics and Management (CREM), University of Rennes, University of Caen and CNRS.
    • Handle: RePEc:tut:cremwp:2016-07
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Choice overload; Information overload; Bounded rationality; Familiarity; Experimental Economics;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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