Overchoice

About this model

This diagram models an economy system focusing on the management of a currency referred to as "Gold." In this system, gold is generated and distributed across various spending opportunities (labeled as Spend on A, B, C, D, E) where it can be allocated. The central mechanism involves a source of gold that feeds into a pool labeled "Gold to Spend," from which resources are distributed to different pools representing various opportunities or areas where the gold can be spent. Additionally, there is a mechanism for adding more "Gold Sinks" interactively, which can influence the flow and distribution of gold within the system.

The model also includes a concept labeled "Overchoice," possibly simulating a scenario where an excess of spending options leads to decision paralysis or hoarding behavior among participants. This is supported by the presence of a register labeled "Chance to Hoard," which seems to calculate the likelihood of hoarding based on the number of available sinks. As gold sinks increase, the model likely aims to reflect how an increase in spending options without clear value distinction can lead to reduced spending and increased saving or hoarding, emphasizing the economic principle of overchoice and its impact on resource allocation.

"Overchoice" is a public Machinations diagram shared in the Community by Harry Ashton, with 28 components.

It was created in June 2023 and last edited in April 2024.

Open the diagram in the Machinations app and press Play to watch the resources move, adjust its values to test how the system responds, or remix it to make an editable copy in My diagrams.