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Nudging: An Experiment on Transparency, Controlling for Reactance and Decision Time

Author

Listed:
  • Tobias Schütze
  • Carsten Spitzer
  • Philipp C. Wichardt
  • Philipp Christoph Wichardt

Abstract

Is being informed about nudging detrimental to the effect of the nudge? This paper reports results from an experimental study (n = 623) testing the effects of transparency on the effectiveness of a default nudge while controlling for reactance and decision time. Overall, the data show that more people follow the default if the nudge is made transparent. More importantly, though, effects of transparency differ depending on whether people are fast or slow in their decision making. In particular, (only) slow decision makers react more positively (keeping the default) if nudging is made transparent. Moreover, the data also show an interaction of reactance and decision time in that more reactant subjects making slower decisions respond more negatively (i.e. leave the default more often). Thus, a positive effect of transparency as well as a negative impact of reactance can be established in the data if decision time is accounted for.

Suggested Citation

  • Tobias Schütze & Carsten Spitzer & Philipp C. Wichardt & Philipp Christoph Wichardt, 2023. "Nudging: An Experiment on Transparency, Controlling for Reactance and Decision Time," CESifo Working Paper Series 10599, CESifo.
    • Handle: RePEc:ces:ceswps:_10599
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    References listed on IDEAS

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    4. Bruns, Hendrik & Kantorowicz-Reznichenko, Elena & Klement, Katharina & Luistro Jonsson, Marijane & Rahali, Bilel, 2018. "Can nudges be transparent and yet effective?," Journal of Economic Psychology, Elsevier, vol. 65(C), pages 41-59.
    5. Robert Sugden, 2008. "Why incoherent preferences do not justify paternalism," Constitutional Political Economy, Springer, vol. 19(3), pages 226-248, September.
    6. Cass R. Sunstein, 2018. "“Better off, as judged by themselves”: a comment on evaluating nudges," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 65(1), pages 1-8, March.
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    More about this item

    Keywords

    nudging; transparency; reactance; decision time;
    All these keywords.

    JEL classification:

    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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