Default Effect

The Default Effect is a psychological tendency where people are more likely to choose an option that is pre-set or presented as the standard, rather than actively choosing something different. For example, if a company automatically enrolls employees in a retirement savings plan, many will stay enrolled simply because it’s the default, even if they might prefer to opt out. This happens because people often stick with the default options as they require less effort and decision-making, and their choices are influenced by perceived recommendations or standards.