Lecture 7

Question 1

Choice

Answer 1

A selection made between two or more alternatives

Question 2

Bounded Rationality

Answer 2

Limitations or constraints in the reasoning process of the decision maker

Question 3

Optimizing

Answer 3

• Evaluate all the available choices
• select the choice that will result in the most favourable outcome

Question 4

Sacrificing

Answer 4

• set an aspiration criterion level
• searches all possible choices until a choice is found that satisfies the aspiration criterion level
• select this alternative and stop search

Question 5

Lyegar & Lepper (2000) Is having too many choices detrimental?

Answer 5

• people prefer having extensive choices over limited choices
• people’s motivation to act on their choices is lower when there are extensive choices

Question 6

Choice overload effect

Answer 6

“the provision of extensive choices may sometimes still be seen as initially desirable, it may also prove unexpectedly demotivating in the end” (Lyengar, S.S., & Pepper, 2000 p996)

Question 7

When are people susceptible to the choice overload effect?

Answer 7

• when people are not familiar with the options
• when people do not have a preference for any of the choices