@article{ea02305aa259432e8f2ed809c7ca0b81,
title = "Decision-making approaches and the propensity to default: Evidence and implications",
abstract = "This paper examines heterogeneity in the responsiveness to default options in a large state retirement plan, focusing on individuals{\textquoteright} decision-making approaches as well as their economic and demographic characteristics. Analyses of a survey of plan participants show that procrastination and the need for cognitive closure are important determinants of the likelihood of default. This paper also explores an important implication of defaulting—individuals who default are significantly more likely to subsequently express a desire to enroll in a different plan. The desire to change plans is also correlated with numerous economic and decision-making characteristics, including procrastination.",
keywords = "Behavioral economics, Decision making, Default options, Pensions, Retirement",
author = "Brown, {Jeffrey R.} and Farrell, {Anne M.} and Weisbenner, {Scott J.}",
note = "Funding Information: This research was supported by the U.S. Social Security Administration (SSA) through grants RRC08098400-04-00 and RRC08098400-03-00 to the National Bureau of Economic Research (NBER) as part of the SSA Retirement Research Consortium. The findings and conclusions expressed are solely those of the authors and do not represent the views of SSA, any agency of the Federal Government, or the NBER. This research would not have been possible without the expert and enthusiastic assistance of the State Universities Retirement System staff, especially Bill Mabe, Pam Butler, Tracy Childress, and Byron Campbell. We thank Susan Anderson for cheerful and expert assistance in programming the survey instrument and Lisa Marinelli for her exceptional assistance guiding this project through the Institutional Review Board process. We thank workshop participants at the SSA and the University of Colorado at Boulder for feedback on earlier versions of this paper and an anonymous referee for useful comments. Publisher Copyright: {\textcopyright} 2016 Elsevier B.V. Copyright: Copyright 2016 Elsevier B.V., All rights reserved.",
year = "2016",
month = sep,
day = "1",
doi = "10.1016/j.jfineco.2016.05.010",
language = "English (US)",
volume = "121",
pages = "477--495",
journal = "Journal of Financial Economics",
issn = "0304-405X",
publisher = "Elsevier",
number = "3",
}