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 before choosing one or taking an outside option. We characterize the regret-minimizing search rule and show that the likelihood of opting out often increases as more options become available for exploration. Our model thus predicts `choice overload,’ the phenomenon by which a default alternative is more likely to be chosen in larger choice sets.
| Building: | Lorch Hall |
|---|---|
| Website: | |
| Event Type: | Workshop / Seminar |
| Tags: | Economics, Microeconomics, seminar, Theory |
| Source: | Happening @ Michigan from Department of Economics, Economic Theory, Department of Economics Seminars |
