Choice overload and asymmetric regret

Abstract

We propose a model of "choice overload" which refers to a stronger tendency to select the default option in larger choice problems. Our main finding is a behavioral characterization of an asymmetric regret representation that depicts a decision maker who does not consider the possibility of regretting the choice of the default option. By contrast, the value of ordinary alternatives is subject to a regret term. The calculus of regret for ordinary alternatives is identical to that in Sarver's (2008) anticipated regret model, despite the fact that the primitives of the two theories are fundamentally different.