The Digital Search Paradox – Game Theory, Platforms and Endless Choice | with Sarah Auster
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When platforms offer endless choice, game theory reveals a hidden paradox: more options can make everyone — users and sellers alike — systematically worse off.
Game TheorySearch TheoryInformation AsymmetryParadox of Choice
Theory Briefing
- Sarah Auster applies game theory to digital platforms, showing how infinite search options can trap users in costly, inefficient browsing loops.
- The paradox emerges because sellers strategically exploit searchers' overwhelm, distorting prices and quality in ways a smaller marketplace would not.
- Platform design isn't neutral — the architecture of choice itself becomes a strategic variable that shapes outcomes for every participant.