Default rules can shape behavior more than economic incentives, study finds.
Behavioral economics is shaping regulations in countries like the US and UK. It focuses on using simple, low-cost methods to influence people's choices without changing their options. Things like default rules and simplification can have a big impact, sometimes more than money incentives. This approach has led to changes in areas like savings, finance, distracted driving, energy, climate change, obesity, education, poverty, health, and the environment.