The effects of default settings on behavior: A systematic literature review

Abstract

Nudges have gained increased attention since Thaler and Sunstein introduced the behavioral term in 2008. Choice architecture and the default nudge have been both praised and criticized since. Previous research has examined the effect, potential, ethical and societal implications nudges represent. However, defaults explicitly hold untapped potential in a vast amount of business settings. This literature aims to understand the fundamental attributes of default nudges and summarise the existing literature, while also providing future research direction for future research endeavors. Findings include the role of socioeconomic background, individual characteristics, and how they perceive defaults. General description and effectiveness of defaults in a wide range of business settings. The ethics and transparency of default nudges, and how defaults could be used to achieve environmental and societal goals.