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
Understanding and overcoming confusion in consumer financial decisions. This project aims to develop consumer-centred approaches to reducing the harmful effects of confusion in financial decisions by studying superannuation investment and home loan decisions where confused choices are individually and collectively costly. The project intends to develop comprehensive models to capture the full complexity of financial products and the diverse preferences and capability of consumers, then to use ad ....Understanding and overcoming confusion in consumer financial decisions. This project aims to develop consumer-centred approaches to reducing the harmful effects of confusion in financial decisions by studying superannuation investment and home loan decisions where confused choices are individually and collectively costly. The project intends to develop comprehensive models to capture the full complexity of financial products and the diverse preferences and capability of consumers, then to use advanced statistical methods to estimate the benefits of clearer decision-making. The outcomes of this project includes new models of complex financial decisions, and a better understanding of where confusion arises and the effects it may have. Decreased confusion will raise financial well-being and help communities become more resilient to financial shocks.Read moreRead less
Mandatory pre-funded retirement income schemes: Best policy and practice. This innovative project aims to leverage in-depth knowledge of two mandatory pre-funded retirement income systems, Australia and the Netherlands to create new findings to significantly advance policy and practice in these two countries. Mandatory pre-funded retirement income structures adopt a range of approaches regarding choice and drawdown structures. This project aims to use survey and experimental techniques, and stoc ....Mandatory pre-funded retirement income schemes: Best policy and practice. This innovative project aims to leverage in-depth knowledge of two mandatory pre-funded retirement income systems, Australia and the Netherlands to create new findings to significantly advance policy and practice in these two countries. Mandatory pre-funded retirement income structures adopt a range of approaches regarding choice and drawdown structures. This project aims to use survey and experimental techniques, and stochastic life-cycle models, to investigate comparative choice frameworks and the menu of retirement income products in the two countries. It aims to deliver models for improved policy and retirement income designs, producing outcomes which aim to generate global benefit as more countries move towards this pension paradigm.Read moreRead less
Reaching for tax breaks: Household financial decisions and tax policy. The project aims to investigate how two tax incentives – franking credits and negative gearing of investments – impact individual taxpayer risk-taking behaviour, voluntary savings and retirement outcomes. The project will develop a new measure of tax efficiency based on if, and how, individuals take advantage of franking credits and negative gearing. It will identify what factors drive the use of franking credits and negativ ....Reaching for tax breaks: Household financial decisions and tax policy. The project aims to investigate how two tax incentives – franking credits and negative gearing of investments – impact individual taxpayer risk-taking behaviour, voluntary savings and retirement outcomes. The project will develop a new measure of tax efficiency based on if, and how, individuals take advantage of franking credits and negative gearing. It will identify what factors drive the use of franking credits and negative gearing and whether their use is associated with better retirement outcomes. The findings of the project will potentially lead to an improvement in individuals’ financial literacy, retirement outcomes and reduce reliance on the aged pension.Read moreRead less