cover image: A Laboratory Study of Nudge with Retirement Savings /

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A Laboratory Study of Nudge with Retirement Savings /

11 Jul 2018

We report results from an on-line economics experiment that examines the effect of nudging retirement savings decisions. In the experiments, participants make decisions in a finitely repeated retirement savings game, in which income during working years is uncertain, and retirement age is known. Participants, who are household financial decision-makers, are nudged with automatic savings in each period of the game. We find that that the nudge simply replaced natural decision-making observed in the absence of a nudge in this experiment, even to the extent that it resulted in nearly identical inferred decision rules. This surprising result highlights the unpredictability of the effect of nudging human behavior.
economics economy psychology mathematics philosophy retirement standard deviation precautionary savings experiment t-test p-value nudge value function s.d consumption smoothing experimental studies nudge (book) marginal propensity to consume propensity to consume nudging
ISSN
22920838
Pages
22
Published in
Montreal, QC, CA

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