In standard trust games, no trust is the default, and trust generates a potential gain. We investigate a reframed trust game in which full trust is default and where no trust generates a loss. We find significantly lower levels of trust and trustworthiness in the loss domain when full trust is default than in the gain domain when no trust is default. As a consequence, trust is on average profitable in the gain domain, but not in the loss domain. We also find that subjects respond more positively to higher trust in the loss domain than in the gain domain.

I introduce the notion of “neglect defaulting,” which labels the propensity to neglect possibilities which are ordinarily sensibly neglected. In familiar contexts we are well-tuned to recognize when to override the default. But outside the range of familiar experience — here in the artificial context of puzzles — these ordinarily benign defaults can make it difficult for even sophisticated subjects, such as readers of this note, to avoid responses which on reflection will be seen as obviously mistaken. A detail of particular importance is that, although subjects are easily prompted to take one step in the direction of reaching a sound response, the tendency to then neglect to consider that another step may be needed is remarkably strong. In each of the five examples the needed but usually neglected second step is quite trivial. Concluding remarks point to consequences for larger questions outside the range of familiar experience, in politics and other contexts out of scale with everyday experience.

Recently, defaults have become celebrated as a low-cost and easy-to-implement nudge for promoting positive outcomes, both at an individual and societal level. In the present research, we conducted a large-scale field experiment (N = 32,508) in an educational context to test the effectiveness of a default intervention in promoting participation in a potentially beneficial achievement test. We found that a default manipulation increased the rate at which high school students registered to take the test but failed to produce a significant change in students’ actual rate of test-taking. These results join past literature documenting robust effects of default framings on initial choice but marked variability in the extent to which those choices ultimately translate to real-world outcomes. We suggest that this variability is attributable to differences in choice-to-outcome pathways – the extent to which the initial choice is causally determinative of the outcome.

Debate around inflectional morphology in language acquisition has contrasted various rule- versus analogy-based approaches. This paper tests the rule-based Tolerance Principle (TP) against a new type of pattern in the acquisition of the possessive suffix -im in Northern East Cree. When possessed, each noun type either requires or disallows the suffix, which has a complex distribution throughout the lexicon. Using naturalistic video data from one adult and two children – Ani (2;01–4;03) and Daisy (3;08–5;10) – this paper presents two studies. Study 1 applies the TP to the input to extrapolate two possible sets of nested rules for -im and make predictions for child speech. Study 2 tests these predictions and finds that each child’s production of possessives over time is largely consistent with the predictions of the TP. This paper finds the TP can account for the acquisition of the possessive suffix and discusses implications for language science and Cree language communities.

We use administrative data on federal civilian workers' accounts in their employer-provided defined contribution plan, called the thrift savings plan (TSP), to provide new evidence on the effects of employer matching and defaults on workers' savings behavior. The empirical analysis relies on exogenous variation stemming from two natural experiments caused by policy changes to the TSP: the establishment of an employer match for workers hired after 1983 and the introduction of automatic enrollment for workers hired after July 2010. We find that the introduction of the employer match lead to a higher increase in both participation and contribution rates compared to the subsequent switch to automatic enrollment. In terms of portfolio allocations, we find that matching and automatic enrollment had small and minimal effects, respectively.

Children's differing learning trajectories cross-linguistically have been at the forefront of gender acquisition research, often with conflicting results and conclusions. As a result, the source of children's different learning behaviors in gender acquisition has been unclear. I argue that children's gender acquisition is driven by the search for productive patterns. First, I provide corpus studies where the predictions of a learning model (Yang, 2016) are formulated. Second, I report the results of an elicited production task on Icelandic-speaking children (N = 26, ages 2;6-6;3 years) and adults (N = 18) that puts these predictions to test. The results suggest that Icelandic-speaking children and adults draw a categorical distinction between productive and unproductive suffixes in Icelandic gender assignment. I discuss the implications of these findings for morphological learning beyond gender acquisition.

This article analyses the reasons why most Latin American governments frequently defaulted on their debts during the nineteenth century. Contrary to previous works, which focused on domestic factors, I argue that supply-side factors were equally important. The regulatory framework at the London Stock Exchange prevented defaulting governments from having access to the capital market. Therefore, the implicit incentive for underwriting banks and governments was to accelerate negotiations with bondholders, particularly during periods of high liquidity. Frequently, however, settlements were short-lived. In contrast, certain merchant banks opted to delay or refuse a settlement if they judged that the risk of a renewed default was too high. In such cases, even if negotiations were extended, the final agreements were more often respected, allowing governments to improve their repayment record.

This article examines the retirement savings behaviour of twenty-five 30-40 years olds automatically enrolled into a workplace pension scheme. Using qualitative interviews, the paper explores the interaction between savings motivation and willingness to adhere to, or deviate from, the pension scheme defaults. Integrating insights from different savings paradigms, including sociological approaches and behavioural economics, the paper highlights how social motives drove willingness to accept enrolment defaults. Participants’ reactions to the contribution defaults were motivated by a complex combination of factors including anchoring effects, the salience of ageing, and emotional responses such as pride, uncertainty and loss aversion. The author’s main premise is that greater attention needs to be given to the interaction between subjective feelings about saving for retirement and pension scheme design.