Why Default Nudges Work: Identifying Cognitive Mechanism with fMRI

  1. Junichi Chikazoe
  2. Kohei Kawaguchi
  3. Kanji Suzuki
  4. Kosuke Uetake
  5. Yasutora Watanabe
  6. Katsunori Yamada
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Abstract

Default nudges are widely used, yet the mechanisms behind their effectiveness remain unclear. We examine three leading channels: ease, endowment, and endorsement. Our online behavioral experiment confirms the effects of default nudges and indicates that the endowment channel plays a central role. We then use fMRI-based physiological measures to validate that our interventions elicit the intended cognitions. Finally, using randomized assignments of treatments as instruments for cognitions, we identify the causal effects of cognitions on choice using a 2SLS approach. We show that endowment-driven valuation shifts explain default nudges, suggesting that policy designs should leverage this mechanism.

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  1. Version published to 10.31235/osf.io/wfrsp_v3 on OSF Preprints
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