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Mitigating Choice Overload: An Experiment in the U.S. Beer Market

  • Trey Malone (a1) and Jayson L. Lusk (a2)
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)

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The authors would like to thank an anonymous referee and the editor for their constructive comments. All remaining errors are the responsibility of the authors.

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Journal of Wine Economics
  • ISSN: 1931-4361
  • EISSN: 1931-437X
  • URL: /core/journals/journal-of-wine-economics
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