Time pressure and regret in sequential search

Author(s): Martin Kocher, Felix Klimm, Timm Opitz, Simeon Schudy
Abstract: Perceived urgency and regret are common in many sequential search processes; for example, sellers often pressure buyers in search of the best offer, both time-wise and in terms of potential regret of forgoing unique purchasing opportunities. Theoretically, these strategies result in anticipated and experienced regret, which systematically affect search behavior and thereby distort optimal search. In addition, urgency may alter decision-making processes and thereby the salience of regret. To understand the empirical relevance of these aspects, we study the causal effects of regret, urgency, and their interaction on search behavior in a pre-registered, theory-based, and well-powered experiment. Empirically, we find that anticipated regret does not affect search behavior either with or without time pressure, while experienced regret leads to systematic adjustments in search length. Urgency reduces decision times and perceived decision quality, but does not generally alter search length. Only very inexperienced decision-makers buy earlier when pressured. Thus, consumer protection measures against pressure selling tactics can help inexperienced consumers in particular.
Organisation(s): Department of Economics, Vienna Center for Experimental Economics
External organisation(s): University of Gothenburg, Ludwig-Maximilians-Universität München, Max-Planck-Institut für Innovation und Wettbewerb
Journal: Journal of Economic Behavior & Organization
Volume: 206
Pages: 406-424
No. of pages: 19
ISSN: 0167-2681
DOI: https://doi.org/10.1016/J.JEBO.2022.12.019
Publication date: 02-2023
Peer reviewed: Yes
Austrian Fields of Science 2012: 502057 Experimental economics
Keywords
ASJC Scopus subject areas: Economics and Econometrics, Organizational Behavior and Human Resource Management
Portal url: https://ucrisportal.univie.ac.at/en/publications/9a446cb3-38a5-4cfa-be04-c29c4e185cef