Trade-off aversion and indecisive behaviours

Why do people suffer from choice overload but still prefer larger choice sets? We present a model of indecision where decision makers find making trade-offs psychologically painful. We show that aversion to making trade-offs leads to indecisive behaviours (choice avoidance and choice overload). However, not all trade-off averse decision makers succumb to indecisions. Decision makers who are aware of their trade-off aversion should anticipate indecisive behaviours and mitigate them accordingly by restricting their consideration set. Our results suggest that indecisive behaviours are not simply a problem of having indecisive preferences but also a problem of self-awareness. • Pure indecisiveness can be explained by aversion to making trade-offs. • Not all trade-off averse decision makers would suffer from indecisive behaviours. • Decision makers aware of their indecisiveness could mitigate indecisive behaviours. • Indecisive behaviours result from a lack of self-awareness of indecisive preferences.