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Deciding to invest responsibly: Choice architecture and demographics in an incentivised retirement savings experiment

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  • Hoffmann, Robert
  • Cam, Marie-Anne
  • Camilleri, Adrian R.

Abstract

We report results from a framed field experiment with a realistic retirement savings simulation to examine two factors in socially responsible investment (SRI) decisions: characteristics of investors and the investment choice architecture. We find that default options, age and values are significant explanators while infographics, gender, education and income are not. Further, repeated decisions affect SRI negatively through donor fatigue and positively through windfall gains. Our results suggest SRI is significantly limited by the non-ethical default options pension providers commonly set. Conversely there is scope for nudging pension savers towards socially responsible investments using defaults.

Suggested Citation

  • Hoffmann, Robert & Cam, Marie-Anne & Camilleri, Adrian R., 2019. "Deciding to invest responsibly: Choice architecture and demographics in an incentivised retirement savings experiment," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 80(C), pages 219-230.
    • Handle: RePEc:eee:soceco:v:80:y:2019:i:c:p:219-230
    DOI: 10.1016/j.socec.2019.04.005
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    Cited by:

    1. Lemken, Dominic, 2020. "When do defaults stick and when are they ethical? Taxonomy, sytematic review and design recommendations," DARE Discussion Papers 2005, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).
    2. Lemken, Dominic, 2020. "When do defaults stick and when are they ethical? - taxonomy, systematic review and design recommendations," Key Food Choices and Climate Change Project 307568, Georg-August-Universitaet Goettingen, Department of Agricultural Economics and Rural Development.
    3. Seifert, Marcel & Spitzer, Florian & Haeckl, Simone & Gaudeul, Alexia & Kirchler, Erich & Palan, Stefan & Gangl, Katharina, 2024. "Can information provision and preference elicitation promote ESG investments? Evidence from a large, incentivized online experiment," Journal of Banking & Finance, Elsevier, vol. 161(C).

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