Nudge

Nudge

Improving Decisions About Health, Wealth, and Happiness

Richard H. Thaler, Cass R. Sunstein

participation rates under the opt-in approach were barely 20 percent after three months of employment, gradually increasing to 65 percent after thirty-six months. But when automatic enrollment was adopted, enrollment of new employees jumped to 90 percent immediately and increased to more than 98 percent within thirty-six months. Automatic enrollment thus has two effects: participants join sooner, and more participants join eventually.

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