Decision-making approaches and the propensity to default: Evidence and implications

• 成果类型: Article
• 署名作者: Brown, Jeffrey R.; Farrell, Anne M.; Weisbenner, Scott J.
• 署名单位: University of Illinois System; University of Illinois Urbana-Champaign; National Bureau of Economic Research; University System of Ohio; Miami University; University of Illinois System; University of Illinois Urbana-Champaign; National Bureau of Economic Research
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2016.05.010
• 发表日期: 2016
• 页码: 477-495
• 关键词: Default options; retirement; pensions; behavioral economics; decision making

摘要

This paper examines heterogeneity in the responsiveness to default options in a large state retirement plan, focusing on individuals' decision-making approaches as well as their economic and demographic characteristics. Analyses of a survey of plan participants show that procrastination and the need for cognitive closure are important determinants of the likelihood of default. This paper also explores an important implication of defaulting individuals who default are significantly more likely to subsequently express a desire to enroll in a different plan. The desire to change plans is also correlated with numerous economic and decision-making characteristics, including procrastination. (C) 2016 Elsevier B.V. All rights reserved.