More choice is always better

Abstract

When walking through the aisles of a supermarket, we can choose between dozens of breakfast cereals and potato chips. Amazon offers several hundred varieties of dishwashing liquid and laundry detergent. As we step into our favorite coffee shop, we can have our coffee as a blonde, medium, or dark roast; brewed with beans from Guatemala, Vietnam, or Tanzania; with or without milk, skimmed, soy, or rice milk; with caramel, chocolate, or hazelnut flavor; hot or cold; large or small. On Netflix or iTunes, we can watch not only the latest movies and TV shows but also all the classics and evergreens. The abundant choice offers a satisfying option to everyone-no matter how special his or her tastes. In addition, competition between brands and suppliers drives prices down and quality up. It is therefore no surprise that economists generally view more choice as beneficial.