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The golden halo of defaults in simple choices

Author

Listed:
  • Sullivan, Nikki
  • Breslav, Alexander
  • Doré, Samyukta
  • Bachman, Matthew
  • Huettel, Scott A.

Abstract

Defaults are pervasive in consumer choice. Here, laboratory experiments that used eye tracking were combined with cognitive modeling to pinpoint the influence of defaults in the decision process, along with naturalistic experiments with large pre-registered samples to test the limits of defaults on consumer choices. Contrary to previous assumptions, in simple binary choices, default options did not potentiate rapid heuristic-based decisions but instead altered processes of attention and valuation. Model comparison indicated that defaults received a positive boost in value – a golden halo – that was large enough to increase hedonic choices when the default was hedonic, but had limited effects for utilitarian defaults or for when defaults were incongruent with background goals. The findings illustrate and quantify the mechanisms through which default options shape subsequent decisions in simple choices. Further, boundary conditions for when defaults can and cannot be used to nudge consumer choice are established.

Suggested Citation

  • Sullivan, Nikki & Breslav, Alexander & Doré, Samyukta & Bachman, Matthew & Huettel, Scott A., 2024. "The golden halo of defaults in simple choices," LSE Research Online Documents on Economics 126086, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:126086
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    More about this item

    Keywords

    choice architecture; default options; eye tracking; case modeling;
    All these keywords.

    JEL classification:

    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

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