By: |
Steffen Altmann;
Andreas Grunewald;
Jonas Radbruch |
Abstract: |
We study the effects of two widely observed behavioral policy
interventions⸻the simplification of complex decisions and the implementation
of high-quality defaults. Based on a laboratory experiment featuring a
dual-task paradigm, we demonstrate that these policies do not only improve
decisions in the targeted choice domain, but also yield substantial positive
indirect effects on non-targeted decisions. The latter emerge as a result of
an attention-releasing effect of the policies. Furthermore, the relative
importance of the direct and indirect effects varies systematically across the
population. Evaluations that focus only on the targeted domain may therefore
significantly underestimate the overall effectiveness of attention-releasing
policies and provide a biased assessment of their distributional consequences. |
Keywords: |
administrative burden, limited attention, defaults, nudges, limited cognitive resources, behavioral economics, laboratory experiment |
JEL: |
D91 D01 D04 C91 |
Date: |
2024 |
URL: |
http://d.repec.org/n?u=RePEc:ces:ceswps:_11069&r=nud |