What Is Defaulting In Behavioral Economics?

Defaulting is a practice that is commonly used in behavioral economics to influence people’s decision-making. A default is the option that is automatically chosen 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. Defaulting occurs when a person does not make a specific choice and the default option is automatically chosen for them. This can be used by companies to nudge consumers towards certain products or services. By making it easy for people to choose the default option, companies can influence their decision-making without using outright coercion or manipulation.

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