Economics 1st Edition by Dean Karlan,Jonathan Morduch

Exercise 4

Which of the following are true statements about default rules? (You can choose more than one.) a. Defaults have staying power because opting out of them is typically very costly, requiring people to hire lawyers or prove to authorities that they have sufficient reason for choosing another option.
B) The more difficult it is to opt out of the default option, the more likely people are to stick with it.
C) One reason default options might have staying power is that people often equate "default option" with "recommended option."
D) Default rules work to influence choices only if people are aware of the default option.