Default Bias ⭐
🧠 Psych - 54 / 100
Hey,
Today, We will be talking about the Default Bias .
What is it?
Plethora of choices leads us to inaction paralysis. Thus, we go with the “default option” which can be due to a number of factors.
Example -
In one study, when forced to choose a supplementary pension fund, people will decide not to decide, accepting decisions made for them by others (default bias), reaching a status quo position. [1]
Where does it occur?
In the processes involving rational decision making, we are biased in the hindsight by some of the following factors which we may or may not account :-
Procrastination
Laziness
Lack of expertise in the subject
Therefore, it makes you and the majority of the us, go with the default option which has been presented to us.
Why do I need to know?
Richard Thaler, behavioural economist and co-author of the bestselling book ‘Nudge’ says “The combination of loss aversion with mindless choosing implies that if an option is designated as the “default”, it will attract a large market share. Default options thus act as powerful nudges.” [2]
Takeaways:-
There is highly-likely a chance that people will go with “Default option” if you have one, in your product or services.
References & Studies:-
https://www.researchgate.net/publication/312311911_Default_bias_or_no_default_bias_evidence_from_decisions_regarding_occupational_pension_fund_enrollment_in_Italy
https://www.marketingsociety.com/the-gym/bias-spotlight-default-bias
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