Choice Overload, Satisficing Behavior, and Price Distribution in a Time Allocation Model

Figure 5

Model output: typical satisficer correspondence 𝐴(𝑁) and best satisficer curve 𝑎^∗(𝑁). The two curves 𝑎 and 𝑎 limit the contour of the graph of 𝐴(𝑁). They define three different satisficer regions. In the maximizer zone where 𝑎(𝑁)=𝑎(𝑁), welfare is optimal when all options are checked and the best satisficer is the maximizer. In the satisficer zone I, the consumer is able to choose as a maximizer but optimal welfare is obtained looking over a fraction 𝑎^∗ of 𝑁 which is decreasing as 𝑁 increases. In the satisficer zone II, the optimal fraction is also decreasing but the consumer cannot act as a maximizer, who is experiencing choice paralysis.