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Rotman Management

Defaults Are Not the Same — By Default

WHEN YOU RESEARCH DECISION-MAKING for a living, it’s hard not to observe choice architecture everywhere you look — even on vacation. Disney World is the land of magic and fairytales, but even there you cannot escape science. When ordering something to eat, one of us (Jon) noticed that the default choices for kids’ meals were all geared towards healthier options. The menu swapped soda for juice and french fries for fruits and vegetables. Indeed, a recent study shows that this change in Disney World’s policy led to the consumption of 21 per cent less calories, 44 per cent less fat and 43 per cent less sodium. These defaults are helping ‘the happiest place on Earth’ become a healthier one.

Defaults are one of applied behavioural science’s biggest success stories. There are two reasons underlying their widespread adoption. First, defaults can be very simple — even consisting of just the one-word difference between ‘If you want to be an organ donor, please check here’ (opt-in) and ‘If you don’t want to be an organ donor, please check here’ (opt-out). Second, defaults are surprisingly effective in a wide variety of contexts, from retirement planning decisions to health decisions to consumer decisions.

Despite — or perhaps because of — the widespread use and success of defaults, a couple of important questions have remained in the background until now: How are defaults being implemented? And does it matter how they are implemented? Knowing when and why defaults work highlights the importance of actively rather than passively considering and applying

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