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Does experience eliminate the effect of a default option? - A field experiment on CO2-offsetting for air transport

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Author Info
Löfgren, Åsa () (Department of Economics, School of Business, Economics and Law, Göteborg University)
Martinsson, Peter () (Department of Economics, School of Business, Economics and Law, Göteborg University)
Hennlock, Magnus () (Department of Economics, School of Business, Economics and Law, Göteborg University)
Sterner, Thomas () (Department of Economics, School of Business, Economics and Law, Göteborg University)

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Abstract

Earlier research has shown that using a default option has a decisive effect on individuals’ choices. In many cases, however, the low proportion of subjects who switch from the pre-set default option might partly explained by inexperience with the goods or services offered, and high transaction costs for switching. By conducting a natural field experiment when environmental economists registered on the web to a conference, the default option to offset CO2 emissions was randomly pre-set. Either the participants had to opt-in to offset, opt-out to offset or there was no default option, i.e. an active choice had to be made with no implicit “guidance” from the default. We used experienced subjects and had low transaction costs of switching. Our findings show that the default has no significant effect on the decision to offset.

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File URL: http://hdl.handle.net/2077/21315
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Publisher Info
Paper provided by Göteborg University, Department of Economics in its series Working Papers in Economics with number 391.

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Length: 15 pages
Date of creation: 23 Oct 2009
Date of revision:
Handle: RePEc:hhs:gunwpe:0391

Contact details of provider:
Postal: Department of Economics, School of Business, Economics and Law, Göteborg University Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
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Related research
Keywords: CO2-offsetting; Default option; Field experiment; Public goods;

Find related papers by JEL classification:
C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
D03 - Microeconomics - - General - - - Behavioral Economics; Underlying Principles
D62 - Microeconomics - - Welfare Economics - - - Externalities
Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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This page was last updated on 2009-12-1.


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