@article{Assortments:2977,
      recid = {2977},
      author = {Natan, Olivia R},
      title = {Choice Frictions in Large Assortments},
      publisher = {University of Chicago},
      school = {Ph.D.},
      address = {2021-06},
      pages = {84},
      abstract = {This paper studies how the growth and evolution of product  assortments impact consumer adoption, churn, and long run  consumption. Most economic theories of product variety and  the value of platforms suggest consumers at least weakly  prefer larger product assortments. In contrast, the  psychological literature on the phenomenon of choice  overload finds that larger assortments overwhelm consumers  with decision costs or induce more regret. I provide  empirical evidence of how the size and contents of product  assortments impact consumers over their lifetime in an  online platform market that provides restaurant delivery. I  find that assortment expansion increases the acquisition of  new consumers but reduces the frequency of consumption  among consumers who remain on the platform. I rationalize  these impacts via a model of costly attention and choice  under limited information. Counterfactual exercises show  that targeting choice set reductions can improve revenue  among existing customers.},
      url = {http://knowledge.uchicago.edu/record/2977},
      doi = {https://doi.org/10.6082/uchicago.2977},
}