Default contract terms sway negotiations, shaping preferences and outcomes.
The article discusses how people tend to prefer contract terms that will happen if they do nothing, rather than terms that require them to take action. This bias can lead to favoring default legal terms or terms in form contracts. The researchers conducted experiments showing that in negotiations, people value terms that happen by default more than terms that need active agreement. They suggest this preference is due to the fear of regret from making a decision.