The default effect, a concept within the study of nudge theory, explains the tendency for an agent to generally accept the default option in a strategic interaction.[1] The default option is the course of action that the agent, or chooser, will obtain if he or she does not specify a particular course of action.[2] The default effect has broad applications for firms attempting to 'nudge' their customers in the direction of the firm's optimal outcome. Experiments and observational studies show that making an option a default increases the likelihood that such an option is chosen.[3] There are two broad classes of defaults: mass defaults and personalised defaults.[4] Setting or changing defaults has been proposed and applied by firms as an effective way of influencing behaviour—for example, with respect to setting air-conditioner temperature settings, giving consent to receive e-mail marketing, or automatic subscription renewals.
^Altman, Morris (2017). "Aspects of Smart Decision-Making". Handbook of Behavioural Economics and Smart Decision-Making: 155–156. doi:10.4337/9781782549598. ISBN 9781782549598.
^Herrmann, Andreas; Goldstein, Daniel G.; Stadler, Rupert; Landwehr, Jan R.; Heitmann, Mark; Hofstetter, Reto; Huber, Frank (2011-11-01). "The effect of default options on choice—Evidence from online product configurators". Journal of Retailing and Consumer Services. 18 (6): 483–491. doi:10.1016/j.jretconser.2011.06.005. ISSN 0969-6989.
^"Do you need a nudge?". Yale Insights. Retrieved 2021-04-22.
^"Nudge Your Customers Toward Better Choices". Harvard Business Review. 2008-12-01. ISSN 0017-8012. Retrieved 2021-04-22.
The defaulteffect, a concept within the study of nudge theory, explains the tendency for an agent to generally accept the default option in a strategic...
would have any effect. "Nudging" is an umbrella term referring to many techniques, and skeptics believe some nudges (e.g. defaulteffect) can be highly...
A credit default swap (CDS) is a financial swap agreement that the seller of the CDS will compensate the buyer in the event of a debt default (by the debtor)...
reason why judgment in default should be set aside. This covers any situation but is commonly used when service was effected properly, but still did...
second game, but underwent a big redesign for Mass Effect 3. Six different designs for the default female Shepard were hosted online, and fans were told...
Bravely Default, known in Japan as Bravely Default: Flying Fairy, is a role-playing video game developed by Silicon Studio for the Nintendo 3DS handheld...
In neuroscience, the default mode network (DMN), also known as the default network, default state network, or anatomically the medial frontoparietal network...
moving. In reality it was not moving at all, but due to the autokinetic effect it appeared to move. How much the light appears to move varies from person...
like the status quo bias or endowment effect might be at work, or consumers may fail to opt-out of the default due to associated effort. It is important...
improved following the release of the Japan-only mobile title Bravely Default: Fairy's Effect and the 2018 Nintendo Switch title Octopath Traveler, and the team...
found that even when disclosing the intent of the default to consumers, the effect of the default is not reduced. An experiment conducted by Sen Geng...
Default logic is a non-monotonic logic proposed by Raymond Reiter to formalize reasoning with default assumptions. Default logic can express facts like...
provided the end be their improvement, and the means justified by actually effecting that end. Mill above declares barbarians to be in need of paternalism...
A sovereign default is the failure or refusal of the government of a sovereign state to pay back its debt in full when due. Cessation of due payments...
of credit default swaps or bonds with a CDS index than it would be to buy many single name CDS to achieve a similar effect. Credit-default swap indexes...
program Safety culture Related concepts Behavioral economics Social proof Defaulteffect Paternalism Libertarian paternalism Choice architecture Social engineering...
ISBN 978-92-899-0862-7. Retrieved 5 March 2014. Fred Reichheld (1996) The Loyalty Effect, Harvard Business School Press, Boston, 1996. "About Octopus Rewards". Octopus...
million blacklisted judgment defaulters had fulfilled their legal obligations and been removed from the judgment defaulter blacklist, accounting for half...
that people often behave irrationally. Setting the default in order to exploit the defaulteffect is a typical example of a soft paternalist policy. Countries...
their learning process. Action-specific perception Ambient optic array Defaulteffect Form follows function Usability Engineering portal J. J. Gibson (1966)...
exception of on-balance sheet netting where the effect of netting is included in Exposure At Default). For on-balance sheet transactions, EAD is identical...
Global Information