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