Default effects, transaction costs, and imperfect information Christopher Wilson Luke Garrod Alistair Munro 2134/15288 https://repository.lboro.ac.uk/articles/journal_contribution/Default_effects_transaction_costs_and_imperfect_information/9494219 We develop a decision framework with imperfect information to analyze the effects of transaction costs on the tendency for individuals to remain with a default option. We demonstrate how transaction costs can be a more important source of such default effects than commonly thought. A further, potentially surprising result shows that transaction costs are able to explain why some forms of default effects increase with the number of options. 2014-07-22 11:50:43 Default effect Transaction cost Imperfect information Economics Economics not elsewhere classified