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We test whether people's tendency to stick with the default option can help save resources. In a natural field experiment we switch printers' default settings, from simplex to duplex printing, at a large Swedish university. The results confirm that roughly one third of all printing is determined...

Since the enactment of Pension Protection Act of 2006, lifecycle funds that reduce exposure to stocks with age have rapidly replaced money market funds as the most commonly nominated default investment options for participant-directed retirement plans. We examine their appropriateness in meeting...

The purpose of this study is to explore the effect of tax convexity on firms’ market risk, where tax convexity measures the progressivity of firms’ tax function. We examine the relation between equity beta and tax convexity based on a standard contingent-claims model, in which firms face...

This paper investigates the association between real estate demand and the volatility of population changes. In a financial liberalized housing market, the housing mortgage loan implies insurance function to homeowners through the default option. Larger expected volatilities in the population...

The objective of the present paper is to investigate the robustness of the well-known result that pre-set default options determine people's choices. We do so by conducting a field experiment among environmental economists attending a large international conference on environmental economics....

In a large number of decisions, the option that does not require a specific action such as filling in a form is chosen frequently. It is a stylized fact that opt-in or opt-out designs for otherwise identical choices lead to vastly different outcomes. Choice options are chosen more frequently...

This paper evaluates the default risk of civil servants’ wage-indexed payment mortgage (WIPM) contract in Turkey, which is linked to the expected inflation. The aim of the study has two sides: one is to apply the contingent claims approach, which has been widely used to price standard fixed-...

For participants in defined contribution (DC) plans who refrain from exercising investment choice, plan contributions are invested following the default investment option of their respective plans. Since default investment options of different plans vary widely in terms of their benchmark asset...