Day: July 28, 2016

Traditionally, economic theory has treated people as wholly rational actors – when presented with a choice, we choose the utility-maximizing option, regardless of what the default or status quo might be. Recent social science research has shown that real people don’t always act so rationally; we are influenced by social pressures. One of the most powerful norms that drive behavior are default rules. As Cass Sunstein describes them, defaults are invisible “nudges.” They don’t force us to choose one way or another, but they can make us lean in a particular direction. The impact that defaults can have on individual decision-making