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Do default nudges lead people to make choices inconsistent with their preferences: An experimental investigation

Abstract

People apply more frequently when “apply” is the default choice (Apply Default architecture) than when “do not apply” is the default choice (Not-Apply Default architecture). However, Apply Default architecture might let them make choices inconsistent with their preferences as this architecture is counterintuitive. Those trying to apply might mistakenly choose to not apply under Apply Default architecture. In this study, we hypothesized that people's choices under No-Default architecture (i.e., a choice architecture without a default option) are less consistent with those under Apply Default architecture than those under Not-Apply Default architecture (Hypothesis 1). We also hypothesized that people who spent more time on making decisions would make choices consistent with their preferences because when people spend sufficient time to understand the construction of Apply Default architecture, they can make choices consistent with their preferences (Hypothesis 2). We recruited 997 participants and asked them to make decisions under No-Default and Default architectures (Apply Default or Not-Apply Default architecture). The results supported both Hypothesis 1 and Hypothesis 2. A method to help applicants make choices consistent with their preferences is finally discussed.

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