Mitigating Choice Overload: An Experiment in the U.S. Beer Market. (8th November 2018)

• Record Type: Journal Article
• Authors: Malone, Trey; Lusk, Jayson L.
• Is Part Of: Journal of wine economics. Volume 14:Number 1(2019)
• Page Start: 48
• Page End: 70
• Publication Date: 2018-11-08
• Subjects: choice overload, -- craft beer, -- search costs; Wine and wine making -- Economic aspects -- Periodicals; Wine and wine making -- Periodicals; Wineries -- Economic aspects -- Periodicals; 338.476632
• DOI: 10.1017/jwe.2018.34
• Languages: English
• ISSNs: 1931-4361

Abstract

Abstract: This study tests the prevalence of choice overload (CO) in the U.S. beer market. We reveal that even if CO exists, sellers have mechanisms to reduce CO's negative consequences. The article describes the implementation of search cost-reducing private nudges (i.e., product quality scores and prominently listed specials) sellers commonly utilize to minimize CO's negative consequences. Our results suggest that, while CO exists for some buyers, it can be eliminated by market interactions on the part of the seller. (JEL Classifications: C93, D03, Q13)