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Default-Setting and Default Bias: Does the Choice Architect Matter?

Author

Listed:
  • David J. Freeman

    (Simon Fraser University)

  • Hanh T. Tong

    (Simon Fraser University)

  • Lanny Zrill

    (HEC Montreal)

Abstract

This paper studies how choices are influenced by the procedure used to select the default option. We develop an approach to test and compare default bias across different default-setting rules while controlling for heterogeneous preferences. We apply it to a within-subjects experimental design lottery choice experiment to compare four different default-setting rules: Random defaults, Custom defaults selected based on an individual's own past choices, Social defaults selected based on others’ choices, and Expert-set defaults. We find that the content of default-setting rules matters: default bias is present for all non-random default-setting rules we study, but not for randomly-set defaults.

Suggested Citation

  • David J. Freeman & Hanh T. Tong & Lanny Zrill, 2021. "Default-Setting and Default Bias: Does the Choice Architect Matter?," Discussion Papers dp21-08, Department of Economics, Simon Fraser University.
    • Handle: RePEc:sfu:sfudps:dp21-08
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    References listed on IDEAS

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