What Is A Default In Behavioral Economics?

In behavioral economics, a default is the option that is chosen automatically unless the individual takes some action to choose a different option. For example, if you are signing up for a new service and there is a default option for the type of subscription you will receive, you will automatically be enrolled in that subscription unless you actively choose a different option. Defaults can have a significant influence on people’s choices, as many people are more likely to stick with the default option rather than take the time and effort to make a different choice. This can be used by companies to nudge consumers towards certain products or services.

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