Nudge

Nudge

Improving Decisions About Health, Wealth, and Happiness

Richard H. Thaler, Cass R. Sunstein

With required choosing in place, employees have to state their preferences, and there is no default option. As compared with the usual opt-in approach (you are not enrolled unless you decide to fill out the forms), required choosing should increase participation rates. One company switched from an opt-in regime to active decisions and found that participation rates increased by about 25 percentage points.8

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