CBT Research Seminar
Daniel Reck will be giving a seminar based on his paper, 'Optimal defaults with normative ambiguity,' co-authored with Jacob Goldin
Daniel Reck is an Assistant Professor of Economics at the London School of Economics and Political Science. His co-author, Jacob Goldin, is an Assistant Professor of Law at Stanford Law School.
An abstract of their paper is given below:
Default effects are pervasive, but the reason they arise is often unclear. We study optimal policy when it is ambiguous whether an observed default effect reflects a welfare-relevant preference or a mistake by decision-makers. Within a broad class of models, determining optimal policy is impossible without resolving this normative ambiguity. Depending on the resolution, optimal policy tends in opposite directions: either minimizing the number of non-default choices or promoting active choices. We illustrate our results using data on pension contribution defaults. When selecting a non-default option reduces employee welfare by less than $160, the optimal policy promotes active choices.
If you wish to attend this seminar then please email the organiser. Please arrive 10 minutes before the start time to ensure a prompt start to the seminar.