Monetary scarcity leads to increased desire for assortment

Money is a unique resource that provides considerable freedom and options to consumers. Restrictions on money may have a broader impact on consumers than similar restrictions to other desirable resources. In the first two studies, we show that within two different resources, money and space, only money prompts a stronger desire for a large assortment. In two subsequent studies, we find that when individuals face monetary scarcity, they place more value on their freedom of choice, in that they are dissatisfied with small assortments (study 3) and tend to prefer to keep their choice options open (study 4). Importantly, this effect is especially strong among highly reactant consumers.

Duke Scholars

Author Gavan J. Fitzsimons Fuqua School of Business