Default Nudges

Default Nudges

From People's Experiences to Policymaking Implications

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All over the world, private and public institutions have been attracted to "nudges," understood as interventions that preserve freedom of choice, but that steer people in particular directions. The most effective nudges are often "defaults," which establish what happens if people do nothing. For example, automatic enrollment in savings plans is a default nudge, as is automatic enrollment in green energy.Default rules are in widespread use, but we have very little information about how people experience them, whether they see themselves as manipulated by them, and whether they approve of them i...