CeDEx workshop - Jörg Weber (University of Nottingham)

Nudging the Overloaded: nudge resistance and reliance in a complex environment

We present an experimental design that aims to investigate two related issues: choice overload and the impact of nudging. There is now increasing discussion of both issues separately, i.e. whether a larger choice set may actually decrease consumer welfare and the extent to which individuals respond to nudges in particular domains. Our design combines both issues by creating a complex and risky environment where individuals self-select the size of their choice set and lotteries vary in their riskiness and attractiveness. Subjects can moderate their exposure to risk provided they are able to identify unattractive lotteries. We test whether this becomes more difficult as we manipulate key parameters to vary the likelihood of choice overload. We investigate the extent to which we can influence individual risk taking through social feedback nudges and whether this varies with the degree of choice overload.

We present an experimental design that aims to investigate two related issues: choice overload and the impact of nudging. There is now increasing discussion of both issues separately, i.e. whether a larger choice set may actually decrease consumer welfare and the extent to which individuals respond to nudges in particular domains. Our design combines both issues by creating a complex and risky environment where individuals self-select the size of their choice set and lotteries vary in their riskiness and attractiveness. Subjects can moderate their exposure to risk provided they are able to identify unattractive lotteries. We test whether this becomes more difficult as we manipulate key parameters to vary the likelihood of choice overload. We investigate the extent to which we can influence individual risk taking through social feedback nudges and whether this varies with the degree of choice overload.