Proceedings of The 5th International Conference on Business, Management and Finance
Default Options and Commitment Devices: Evidence from Chinese College Students
Jiayue Sun Mar
Despite the effectiveness, commitment devices are not widely applied in the real life. This paper tests whether and by how much default option affects the take-up rate of a commitment device that aims at reducing screen time usage for college students, as well as the effectiveness of this commitment device. I find that automatic enrollment in the commitment device ‘healthy screen time challenge” increases the take-up rate by 28%, and that the commitment device is marginally effective in reducing screen time usage.
keywords: default options, commitment devices, take-up rate and effectiveness.