COMMERCE 3MB3 Lecture Notes - Lecture 11: Trivago, Netflix, Sheldon Cooper
4 Apr 2017
School
Department
Course
Professor
Document Summary
The simple idea: consumers choose the products that are best for them. Maximizing vs. satisficing - i. e. finding the absolute best (and potentially incurring high search costs) vs. finding an option that satisfies one"s needs. Hyperhoice: having too many options can make choice harder and let us less satisfied. Choosing what"s best for you may be hard. The more choice you have the more difficult it is to pick one (harder to find something you like). You may start second guessing and doubting yourself. There may be an idea that you missed something that is better than what you have. The old theory was that our minds work like a computer and analyze benefits and costs and pick the one with best net value. New: our mind isn"t a computer and we"re happy with an option that is good enough.
