Read (2005), in The Journal of Economic Methodology, took our target article in Behavioral and Brain Sciences (Hertwig amp; Ortmann 2001) as one point of departure to question the usefulness of monetary incentives for experimental work. In making his case, he misrepresents our analysis, and...

We explore experimentally a cognitive-effort channel through which defaults might influence behavior in an environment where the choice architect has misaligned incentives. Our experimental setting is an insurance market where the firm is better informed about the aggregate statistical risk...