Satisfaction in choice as a function of the number of alternatives: When “goods satiate”

People are typically thought to be better off with more choices, yet often prefer to choose from few alternatives. By considering the perceived benefits and costs of choice, it is proposed that satisfaction from choice is an inverted U-shaped function of the number of alternatives. This proposition is verified experimentally. It is further hypothesized that differences in cognitive costs affect the relative location of the function's peak. Specifically, since—in large sets—perceptual costs of processing alternatives varying in shape are greater than for alternatives varying in color, the peak of the satisfaction function for the latter will lie to the right of the former. This prediction is also validated. The paper emphasizes the need for an explicit rationale for knowing how much choice is “enough.” © 2009 Wiley Periodicals, Inc.

[1]  George S. Avrunin,et al.  Single-Peaked Functions and the Theory of Preference. , 1977 .

[2]  E. Deci,et al.  On the Importance of Self-Determination for Intrinsically-Motivated Behavior , 1978 .

[3]  R. Dhar.  Context and Task Effects on Choice Deferral , 1997 .

[4]  George Loewenstein,et al.  Is More Choice Always Better , 1999 .

[5]  M. Lepper,et al.  The Construction of Preference: When Choice Is Demotivating: Can One Desire Too Much of a Good Thing? , 2006 .

[6]  E. Deci,et al.  Self-determination theory and the facilitation of intrinsic motivation, social development, and well-being. , 2000, The American psychologist.

[7]  B. Kahn,et al.  The Influence of Assortment Structure on Perceived Variety and Consumption Quantities , 2004 .

[8]  Nirmalya Kumar,et al.  Strategies to fight low-cost rivals. , 2006, Harvard business review.

[9]  S. Iyengar,et al.  The Dark Side of Choice: When Choice Impairs Social Welfare , 2006 .

[10]  G. Wolford,et al.  Buying Behavior as a Function of Parametric Variation of Number of Choices , 2007, Psychological science.

[11]  K. McConnell,et al.  A Test of Diminishing Marginal Value , 2007 .

[12]  R. Hertwig,et al.  Size, entropy, and density : What is the difference that makes the difference between small and large real-world assortments? , 2009 .

[13]  U. Hoffrage,et al.  Testing the tyranny of too much choice against the allure of more choice , 2009 .

[14]  P. Todd,et al.  What Moderates the Too-Much-Choice Effect? , 2009 .