Wicked defaults: how to overcome the dark side of choice architecture. This project aims to investigate how defaults and product complexity might be used to exploit consumers in environments like private insurance where consumers are prone to making systematic errors. Defaults are used to nudge individuals into socially beneficial actions such as increasing their retirement savings and joining organ donor lists. However, in the hands of firms, defaults can also be used to exploit consumers by en ....Wicked defaults: how to overcome the dark side of choice architecture. This project aims to investigate how defaults and product complexity might be used to exploit consumers in environments like private insurance where consumers are prone to making systematic errors. Defaults are used to nudge individuals into socially beneficial actions such as increasing their retirement savings and joining organ donor lists. However, in the hands of firms, defaults can also be used to exploit consumers by encouraging choices that help the firm but disadvantage consumers. The project intends to study experimentally whether exploitation can be reduced via competition and reputation building systems based on consumer feedback.Read moreRead less
Discovery Early Career Researcher Award - Grant ID: DE130101463
Funder
Australian Research Council
Funding Amount
$375,000.00
Summary
Reinforcement and undermining: the impact of innovative features on dual positioning and choice. Businesses require an understanding of how their features impact product choice in positive and negative ways. This research will advance our understanding of innovation by addressing the theory and practice of product positioning from a new perspective.