Nudge
A method for predictably altering behavior without restricting options or significantly changing incentives.1
People prefer the path of least resistance when making decisions. When the path of least resistance happens to lead to a generally favorable outcome everyone is happy. When the path of least resistance leads to a generally unfavorable outcome, however, the results are problematic. For example, when the default option for new employees is to not be registered for a basic pension program savings rates are very low. However, when the default option is to enroll employees automatically into a basic pension plan savings rates increase dramatically. In both cases, employees are free to join, change plans, or not join, but intelligent ...
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