Exploiting asymmetric signals from choices through default selection

Abstract

Setting defaults is an effective nudge, but few studies have examined situations where individuals can select their own default settings. Past research suggests that even when the final outcome is identical, observers perceive stronger signals from choices that switch from, rather than stay with, the default. In five experiments using hypothetical scenarios and an incentivized economic game, we test whether decision-makers driven by image concerns could strategically exploit that asymmetric signal. We found that in the presence of observers, participants were more likely to self-select into defaults that require them to switch to enhance a positive signal and into defaults that require them to stay to attenuate a negative signal. Our results support the framework of choice architecture as an implicit social interaction, and have potential implications for behavioral interventions in real-world settings.