Effect of Externalities like Choice Overload, Nudges and Unconscious Bias on Consumer Choice and Their Convergence in Student Groups

Chyanika Mitra (), Arindam Paul () and Annesha Neogy
Additional contact information
Chyanika Mitra: Goenka College of Commerce and Business Administration
Arindam Paul: Jadavpur University
Annesha Neogy: Goenka College of Commerce and Business Administration

Chapter Chapter 17 in COVID-19 Pandemic and Global Inequality, 2023, pp 279-293 from Springer

Abstract: Abstract Consumer choice and decision making are often influenced by various covert and inadvertent factors in day-to-day lives, also known as externalities. Prior studies and economists have always stressed and based their models on the ‘assumption’ that consumers are perpetually rational in their decision making and are adept at pursuing the source of their satisfaction. But real-life observations paint a contradictory picture. They have an irrational compulsion to keep options open and have as many goods in their basket as possible, as long as it is on or under their budget curve. While measuring their options and calculating their potential opportunity costs, an average consumer oversees the most important opportunity cost them time. By considering their time they spend taking a decision as constant or irrelevant, they fail to take into account the consequences of not deciding and end up being miserable. This study aims to trace the effect of externalities like choice overload, nudges and unconscious bias on consumer choice among Indians students. Further, a relationship has been established between the three externalities after performing PCA after including certain demographic factors. Our findings indicate that the choice paradox in terms of Choice overload, Nudges and Unconscious bias is very much dependent upon the demographic factors of the individuals such as education, gender and number of family members and economic factors such as the household’s income. Further, these dependencies are not uniform. We found that if the individual is a student, then all three types of choice paradox are present.

Keywords: Choice overload; Nudges; Unconscious bias; Externalities; Consumer choice; Consumer behaviour (search for similar items in EconPapers)
JEL-codes: D12 D90 D91 G41 (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-99-4405-7_17

Ordering information: This item can be ordered from
http://www.springer.com/9789819944057

DOI: 10.1007/978-981-99-4405-7_17

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().