Imagine you’re ordering a takeaway from a meal service app. The meal comes with a portion of fries, but there is an option to swap to a side salad. Would you go for the tasty default, or take a few moments and switch to the healthier choice?
Research suggests you would most likely stick with the fries. But why? Does this have something to do with the power of defaults?
A recent project from a team of experts, including Dr Nicolette Sullivan, Assistant Professor in the Department of Management at LSE, reveals surprising new insights into the influence of these small but powerful nudges over our decisions. The paper, “The golden halo of defaults in simple choices”, uncovers how defaults don’t just help us to make decisions, but actively shape our valuation of the options presented to us.
Contrary to previous theory, we actually take more time and effort to come to a decision when a default option is present
Why nudge defaults work: the “golden halo” effect
“Until now,” explains Dr Sullivan, “most of the literature has said that defaults work because they’re heuristic nudges – that is, they are shortcuts in the decision-making process to save thinking time or effort. So, with this understanding, you accept the default fries with your meal because it’s the fastest or easiest decision.
“However, our findings not only challenge this widely held belief, but also propose an exciting alternative understanding.”
Dr Sullivan is referring to the “golden halo” of defaults, a term the team of researchers have coined to describe their findings.
“The golden halo provides an automatic advantage to the default option when it comes to weighing up a decision,” summarises Dr Sullivan.
A well-placed default can guide people toward better outcomes, but it needs to align with their values and goals to be truly effective
Experimenting with defaults
During the research project, participants were asked to make choices between two simple options, such as between a healthy or an indulgent snack, or a gift card towards either a practical purchase or a more frivolous treat.
“We wanted to see the decisions that people would make, and how they made them,” continues Dr Sullivan. “We gave each participant a suggested goal for their choice – either an indulgent goal, or a healthy or more practical goal. We tested how their decisions played out with different defaults, and without any defaults at all.”
Using eye-tracking and complex computational modelling to analyse the outcomes of these decisions, the team found that the data evidenced a positive valuation boost to defaults.
“The evidence shows that, contrary to previous theory, we actually take more time and effort to come to a decision when a default option is present,” she outlines. “After being presented with a default, we subconsciously assign it a more positive value – a ‘golden halo’ – because it was presented to us as the preselected option. Then we go ahead to assess our options before making our decision.”
I would advise people to really take a pause – remember your own intentions for your choice
When defaults work – and when they don’t
However, the findings suggest that while defaults often do nudge decisions, they require careful alignment with consumer goals for maximum efficacy.
“The advantage provided by the default’s ‘golden halo’ will not always be enough to swing a decision in the default’s favour,” says Dr Sullivan. “If a consumer has firm immediate goals which conflict with the default provided, even the boosting effect of the default’s ‘golden halo’ won’t be enough to change a consumer’s mind.
“For example, we found that a healthy snack default was far less effective for participants who were craving an indulgent treat.”
The researchers also noticed that taste was a huge driver for participants. “We found that most consumers have taste-based goals. Unfortunately, this is why it's hard to eat healthy. When we made the default something really tasty but unhealthy, it often worked brilliantly.”
Interestingly, however, the team found that the presence of a healthy default option would cement a health-conscious intention.
Applying the “golden halo” in the real world
“I am interested in how we can get people to make choices that are better for themselves,” says Dr Sullivan. “Defaults are everywhere, and encouraging people to choose healthy eating options is just one example of how we can use defaults for good.”
In fact, Dr Sullivan’s nuanced understanding of default effects could have far-reaching benefits for policymakers. Governments could use thoughtful, goal-aligned defaults to encourage better behaviours through public policy, such as setting healthier or greener options as defaults in public services.
She has some advice for policymakers who would like to make the most of defaults. “It is important to think about the goals of the people you're trying to nudge, and to tailor defaults accordingly. As we have seen, a well-placed default can guide people toward better outcomes, but it needs to align with their values and goals to be truly effective.”
For individuals, Dr Sullivan has another piece of advice. “Defaults are strategic tools which influence our attention and the valuation of our options. The next time we are faced with a decision where a default is present, I would advise people to really take a pause – remember your own intentions for your choice, and bear in mind that the default may be there to nudge you towards one option in particular.”
Dr Nicolette Sullivan was speaking to Molly Rhead, Media Relations Officer at LSE.
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