Defaults and Attention: The Drop Out Effect
When choice options are complex, policy makers may seek to reduce decision making errors by making a high quality option the default. We show that this positive effect is at risk because such a policy creates incentives for decision makers to "drop out" by paying no attention to the decision and accepting the default sight unseen. Using decision time as a proxy for attention, we confirm the importance of this effect in an experimental setting. A key challenge for policy makers is to measure, and if possible mitigate, such drop out behavior in the field.
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- Patrick Bolton & Antoine Faure-Grimaud, 2009.
"Thinking Ahead: The Decision Problem,"
Review of Economic Studies,
Oxford University Press, vol. 76(4), pages 1205-1238.
- Ariel Rubinstein, 2007. "Instinctive and Cognitive Reasoning: Response Times Study," Levine's Bibliography 321307000000001011, UCLA Department of Economics.
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