“New Learning” Barnard’s Inn Hall Holborn London EC1N 2HH Tel: +44 (0) Fax: +44 (0) © Gresham College 2006 Mercers’ School Memorial Professor of Commerce Michael Mainelli How Can You Have Too Much Choice?

© Gresham College 2006 Outline Multiple choice A man buys … Opportunity guilt … choice regrets Evolution through choice Public choice Buyer, user, shopper, chooser Immortal markets? “Get a detailed grip on the big picture.” Chao Kli Ning

© Gresham College 2006 Multiple Choice

© Gresham College 2006 Hobson’s Choice

© Gresham College 2006 Determinism versus Free Will

© Gresham College 2006 Choice of Choices

© Gresham College 2006 A Man Buys …

© Gresham College 2006 Opportunity Guilt … Choice Regrets

© Gresham College 2006 Evolution through Choice Four Competitive Strategies Source: Mathur, 1988 SUPPORT MERCHANDISE Low High Commodity SystemProduct LowHigh Service

© Gresham College 2006 Choice Puzzles

© Gresham College 2006 Public Choice

© Gresham College 2006 Four Decision Archetypes Source: Boudreaux and Crampton, 2003 DECISIVENESS PERSONAL STAKE Low High Spectator ShopperVoter LowHigh Dictator

© Gresham College 2006 Who’s The Key Decision-Maker? CHOICE CONTROL Low High Shopper BuyerUser LowHigh Chooser

© Gresham College 2006 Critical Systems Heuristics (Source: Ulrich, W., 1983, page 258)

© Gresham College 2006 The Many or The Few

© Gresham College 2006 Immortal Markets or Ancient Democracy? “Se un’idea è più moderna di un’altra, è segno che non sono immortali né l’una né l’altra.” “If one idea is more modern than another, it is a sign that neither one nor the other is timeless.” Carlo Emilio Gadda (1893 – 1973)

© Gresham College 2006 Choice Time Is Money Time

© Gresham College 2006 Discussion 1. What makes a hard choice hard - complexity, impact, learning costs? 2. Can any choice be bad at the time you make it? “Get a big picture grip on the details.” Chao Kli Ning

© Gresham College 2006 How Can You Have Too Much Choice? Thank you!