The influence of a default option on choosing the deductible
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2025-07-04
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en
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This study analyzes the influence of default settings and psychological mechanisms on individual decision-making in the Dutch healthcare sector. Drawing on status quo bias, loss aversion, and default effect theories, three hypotheses are empirically tested: 1) individuals are more likely to keep a pre-chosen deductible, 2) decreasing the necessary deductible lowers the willingness to choose a higher deductible, and 3) psychological mechanisms (endowment, endorsement, and ease) raise the likelihood of keeping the default. A number of 209 participants are exposed to various pairs of default presences and deductible values using an internet survey. Findings show that the default presence has a tiny, but not significant effect on choices. Furthermore, decreasing the compulsory deductible value from €385 to €165 does not produce increased risk aversion or decreased take-up of higher deductibles. It is the other way around. However, there is no significant effect of interaction between the default option and the amount presented. Besides, no psychological predictors are significant in the prediction of default compliance. Higher scores on the endowment scale predict lower chance of choosing the default. Main limitations are a relatively homogenous sample and reliance on self-reported data.
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Faculteit der Managementwetenschappen